All Forum Posts by: Sam Stabler

 Thanks for the reply, Stephanie!

This is our first home we've purchased, so we do not know all the regulations which is the reason why I asked. I was never aware this could even remotely come close to creating an issue, until I heard this very recently. I am a little upset because had i known there may have been a 12-month seasoning period, I would have refinanced a year ago.

Let me ask you this in that case: Do HELOC's also require 12 month seasoning if I were to use that instead of refinancing my 1st mortgage?

Thanks!

I've been living in my current SFR for a year and a half now. I renovated the property while also adding additional square footage from my own cash proceeds. I would like to replenish my cash I put in by doing a refinance cash-out and taking out some equity and using some of the cash-out proceeds for my next home purchase.

However, I read somewhere that if I refinanced, I may have to wait 6-12 months from the initial date of the refinance as there may be a Owner Occupancy clause with the new lender. This would conflict with my plans since my goal is to purchase another home before 6-12 months.

Any advice would greatly be appreciated.

I'm in a bit of a conundrum and needed some advice:

I have an Owner Occupied SFR while generating rent from the permitted back-unit ADU. I want to replenish the cash I spent constructing the ADU as I'm looking to purchase another home and rent out the front unit ASAP.

I wanted to do a refi cash-out (approx $70k cash out) but the brokers whom I've spoken to say lenders are requiring 75% LTV. They can lend up to 80% LTV but my rate will increase by almost a full percentage point plus more in closing costs which is a non-starter for me. Although I prefer doing a refi vs a HELOC because the added cash out is termed out over 30 years and has less of an impact on my cash flow, my concern is I'm not sure if my property will appraise high enough to conform to the 75% LTV with the cash out and I dont know how long the process will take (2-3 months?).

My other option is to get a HELOC, which I've been told is a much faster process plus no appraisal. But my concern with the HELOC is that I dont really like the structure. If I pay minimum interest only payments, I dont reduce the principal. And If I do pay down the principal every month, it will eat up more of my cash flow.

What do you guys recommend?

I'm interested in obtaining a HELOC on my primary residence. I've heard from several ppl on tbis forum that PenFed is great. Im trying to get it my Heloc approved in a quick matter as funds will be needed quickly so I wanted to know if anyone has experience with their turnaround times on Helocs.

Are they quick from start to finish or does it drag?

Thanks.

@Matthew Ruderman There's always better markets, just like there's always someone richer. But real estate is still a local game and it's always best to invest in your local region since you know it best as well as have the capacity to manage it versus out of state.

@Travis Lawrence This is really not smart.

Your gna waste your hard earned money to pay down on an invstment property (which is not smart to begin with) in hopes that you can draw on a HELOC on that investment property in the future. For one, finding a lender what offers a HELOC on a Non owner occupied property is hard, qnd two, the required CLTVs on investment properties are much muchhh lower than Owner Occs.

I want to find a good mortgage broker to see what amount I'm qualified for, and help me navigate for a purchase. Is there any other platform besides yelp? A lot of the reviews on yelp have to deal with brokers who specialize in Refinances as opposed to Purchases. Im looking for a savvy broker who can guide me esp since I'm looking at income properties

No. Currently, I have a conventional 30-year fixed mortgage. I'm either looking to obtain another conventional 30-yr or a HELOC on my primary residence.

For my current primary residence, I want to either obtain do a Refinance Cash-Out or apply for a HELOC and immediately use the entire proceeds of either option along with my cash to purchase my next Primary Residence. However, I was told that I could not use either one of these options (either from the HELOC or the cash-out refi) to purchase my next primary residence if I don't wait at least 1 year because there is a clause which states you have to remain in the property for 1 year.

This sounds absurd. Is there any truth in this????

For my primary residence, I want to either Refinance Cash-Out or obtain a HELOC and immediately use the entire proceeds along with the cash I have to purchase my next Primary Residence. However, I was told that I can't use either one of these proceeds (either from the HELOC or the cash-out refi) to purchase my next primary residence if I didn't wait at least 1 year because there is a clause which states you have to remain in the property for 1 year.

This sounds absurd. Is there any truth in this????