All Forum Posts by: Jerry Padilla

@Garth Richards

I would recommend cash out refinancing in your current situation. You don’t have to pay off the loan to cash out refinance. The first loan would get paid off along with the closing costs and the remainder cash left would be given to you at closing. There is no need to borrow from retirement funds. You can then take this cash and use as a down payment on several more investment properties. 
If you are taking the cash out long term, I would say a cash out refinance over a HELOC. Rates are low and HELOC's typically have higher interest rates and also are adjustable. So rates can go up, and be a much higher cost than the original cash out refinance costs you would of had.

@Alan Nogier

For FHA, a SFR you could co-sign for her, as a family member.
If you are planning on a MFR, you will be a co-borrower and both of you would be required to live in the property.

If you don’t both live in the property, you will be required to put down a much larger down payment and would be better off just going conventional at that point. 

@Mo Muigai

There are going to be closing costs at every bank. 
The only way to avoid closing costs, is to get a HELOC versus a refinance. A HELOC is most likely going to have higher interest rates and the rate will be adjustable. So in the long run, you may be paying much more in interest than you would have in closing costs on a refinance while rates are so low.

@Juana DeLao

Cash out financing is how many of the investors I work with have found success! 

The typical waiting period for a cash out is 6 months, and this is based on Market value if the property. You can start the process prior to 6 months and close right after you hit 6 months. 

With conventional;
For a SFR you can do a max LTV of 75% to cash out.

For a MFR you can get an LTV of 70% for a cash out.

You can do this sooner with delayed financing if you paid cash - with the restriction of pulling out a max of the purchase price plus closing costs prior to 6 months. Delayed financing you still go according to the current appraised value of the property.

@Aakash Sundar 

If they are not on the same lot, they can not be considered a 4 unit.
You would have to purchase one as an investment property - with conventional a 25% down payment is required for a MFR.

@Tim Hudson

@Cindy Gonzalez

For a primary home, I would recommend putting down just the 3.5% with FHA. You are going to see the lowest rates with a primary home. Save the rest for possible repairs or a down payment on an investment property that is going to have a much higher down payment requirement.
For FHA, you will be able to count the rental income from the other units to help you qualify for the loan as well. 

One thing to keep in mind with FHA, is the self sufficiency rule. Market value of all units rents added up and calculated at 75% must be equal or greater than the monthly mortgage payment. (PITI) It has the greatest impact on higher cost areas.

@Marilyn M.

If the properties are in your personal name - you can cash out refinance with an LTV of 75% on a SFR and 70% on a MFR.

If they are in an LLC, the rates will be higher, but it is still possible to cash them out this way as well.

@Shafi Noss

There is a renovation loan that I am aware of for 2-4 units, but is only for the beginner investor as it limits you to a max of 4 financed properties including subject.

@Juan Ramos

For a SFR you could cash out refinance at a 75% LTV with conventional, after owning for 6 months.

@Rese White

We would need more info on why you needed a co-signer to see what options you have.