All Forum Posts by: Mike Singer

Do you still have this place under contract?

Most cashout loans are capped at 80%, even as owner occupied. They allow you to go higher when doing a rate/term or a purchase but not a cashout transaction. 

I'd talk to a mortgage broker. If you'll personally guarantee it and have a decent fico this should be doable. Happy to help if needed. 

Go with the PAR rate. Save that money to buy the rate down when you Refi. Rates are expected to head down so I wouldn't plan to be in this loan long term. 

I can broker them if its a clean deal. What state is the property located in?

You can read the deed of trust that was recorded but I don't believe they can call it due for this. As long as the payments are made as agreed they shouldn't be able to adjust the terms due to a death unless it was a reverse mortgage. 

They just want a solid explanation of why you want to move there to document their file. In their mind you could just buy this place and rent it out after telling them you plan to live there. Its fairly common to ask this if the home is within 100 miles and similar. FHA actually doesn't even allow financing if the home is within 100 miles of the old one.

Hi Jake, 

I spent several years as an underwriter. I assume you are trying to claim the new one as your Primary so the financing terms are better. The deal needs to make sense if you are claiming the new one as a primary residence. If it is similar or smaller they need to justify why you would move from your current home to this one. 

The underwriter is concerned with occupancy fraud. Basically, they want to you to document that this is truly the home you would live in and not just rent it out with Primary loan terms. You can use several explanations to support your claim (Closer to kids school, more bedrooms, etc). They just want a reason. 

Hi Douglass, Most Helocs are based off the federal prime rate + a margin. Prime rate is currently at 7.5. The smallest margin I've seen is around 2.25

Talk to a broker. They have many  different options rather than a bank with very specific requirements. Happy to chat, DM me if you'd like. Good luck!