All Forum Posts by: Jerry Padilla

@Michael Elfant

A cash out refinance is a 6 month wait.

You can do delayed financing prior to 6 months if you paid cash.

If you used private or hard money you can always rate and term refinance that loan without a seasoning period, but you wouldn’t get any cash back. 

@Levi Fleming

No, an FHA loan is a product meant for a primary residence where you reside most of the time.

@Jarrod Gregory

For the BRRR method and cash out financing with conventional the LTV would be 75% for a SFR and 70% for 2-4 unit MFR.

@Laura Williams

I would probably sell them off and invest in properties that are profitable. You will have repairs and updates that will need to get done over time with the properties as well.

@Ken Gurta

Is this an investment property or a primary residence that you are pulling the HELOC out on?

Why not do a cash out refinance instead of the HELOC?

@Kingsley Edemidiong

My wife and I started by purchasing a duplex and living in one of the units, while renting out the other one.

@David P.

Thank you for the mention!

Recent changes to CASH OUT Financing;

- Conforming limits increased across the board everywhere! Here is a link to see the max for your area!

Look Up Conforming Limits For Your Area!

BRRR / BRRRR....... Buy Rent Rehab Refinance..........& Repeat

CASH OUT FINANCING

A cash out refinance is a refinance of your property that allows you to pull equity out of a property. The mortgage can either be paid off free and clear or can have a low enough balance on the current mortgage versus the value, to make it worth pulling out the equity in the property. Cash out refinances are available on primary, second homes and investment properties.

• The typical cash out financing is done after 6 months of owning the property, based on ARV and available for mortgaged properties #1-10. Please see delayed financing for less than 6 months after closing.
• On a primary residence you can pull out up to 80% LTV on a SFR and up to 75% LTV on 2-4 unit multi-families.
• On an investment property; A SFR if you have #1-10 mortgaged properties, you can pull out up to 75% of the equity and on 2-4 units is up to 70% equity.
• On an investment property; If you have #7-10 mortgaged properties, including subject you are required to have a credit score of 720, and are subject to a minimum loan amount of $50k!
• PROPERTIES LISTED FOR SALE - Must be taken off of the market prior to disbursement date of the new mortgage.

Cash Reserves Required For Other Properties Owned by Investor, if doing a cash out on investment property;

Cash Reserve Requirements;

6 months Freddie Mac's Guide to Refinancing, including Cash Out.

Fannie Mae's Guideline to Cash Out Financing.

Fannie Mae Guideline for Cash Out, Mortgaged Property 5-10.

STATES WE LEND IN:

Alabama, Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

@Jason Mayers

It depends on if you originally used financing or cash. 

If you used financing, to purchase the property, with conventional there is a 6 month seasoning period, unless you were only rate and term refinancing the property with no cash back. 

If you originally paid cash on the property, prior to 6 months you will be able to go the route of delayed financing. The only difference between cash out financing and delayed financing is that delayed financing limits you to a maximum of the new loan amount. It can not be more than the actual documented amount of the borrower's initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV). Where as with cash out financing you will only be subject to the LTV ratio's depending on how many units.

@Kenny C.

Here is a link that explains second tier entitlement. The loan amount has to be over $144k as well. 

https://www.benefits.va.gov/HOMELOANS/documents/do...