All Forum Posts by: Paul Defngin

Anton Keith how much equity do you have in the current property you currently live in? Would it be possible to refinance your current home and payoff the balloon loan on your rental? I had a client do that once out of necessity, but when we looked at the numbers, her cash flow on the rental improved even better than before. It also more than covered the increased payment on new refinanced mortgage taken on primary home. PM me if you'd like to brainstorm about your situation. Cheers

@Treveon Blue welcome. Good luck on your journey. 

@John Ford, credit score can sometimes be fixed within a couple of weeks or months. It depends on what is on your credit that is dragging the scores down and your resources. It could be as simple as paying down revolving credit balances, etc. A knowledgeable Loan Officer that knows how to read and understands credit report would be able to help you.  

Going from 652 to 700 or even 740 is very doable with a little bit of time and work.  In most cases, you do not need to wait for a whole year. Once your credit score is high enough, you can then apply for a home of equity of line of credit (HELOC) with either Wells Fargo or TD Bank. They both offer HELOC on investment properties, usually up to 75% of the value, less your current 1st trust balance. 

From your original post, it sounds like you may be able to get access to about $71K of your equity.  Terms will not be the same as a primary home but still decent.  A client of mine recently opened two HELOCs with TD Bank on his two investment properties in District of Columbia.  Rates were Prime plus 1.50% margin and Prime Plus 2.50% margin, respectively due to his credit scores dipping a bit.

*sorry grammatical error. I meant check with some of your local community banks.

John Ford, you should have no problem getting a cash-out on your current property since you have pretty good equity - even with your current credit score. I'd recommend checking with some of local community banks.

James Bowerman congratulations. That's very motivational and inspiring. Thanks for sharing.

Terrence Redmond II, would you be open to networking with some appraisers? Get to know some of them. You'll find that most will provide you the info for free if you get to know them and build a relationship. You can also try using this site: http://realestatecenter.bankofamerica.com/tools/marketvalue4.aspx

New FHA rule requires that donor provides copy of their bank statement to verify donor's ability. The statements will be reviewed to ensure no funds from an interested party were deposited into the donors statement prior to the withdrawal of the gift funds.

Khue Trieu, most banks now will give you a line of credit up to 90% of the appraisal value of your home minus your first mortgage. There are also a few that will go up to 95% or as much as 100% of the appraisal value. Best place to seek line of credit or Home Equity Line of Credit is with your credit union. If you don't belong to one, you should do a Google search of some in your area to compare their requirements to join as well as their terms/interest rates. In my area, we can so simultaneous line of credit up to 95% for owner occupied purchase or refinance. Standalone can go up to 100% I never thought I'd see this product of higher loan to value become available again, especially after the Great Recession. Lending guidelines and restrictions are starting to loosen up a bit. Good luck.

* I just did an 85% LTV for a client recently.