OfflineHi Guys,
I know a lot of people would like to have this problem but please if anyone has run into this situation please advise.
I purchased a property with my HELOC cash. Originally I figured I could just do a refi. Well I found out this is not a refi but a first cash out. Therefore they look at me a bigger risk since I want to get the 30 year fixed loan at 100%. Which I planned for when purchasing below value and doing improvements. I could have easily appraised higher and gotten all the money back to pay back my HELOC.
Well, I have found that they will only do a contract price plus documented improvements at 80% immediately. I was happy to find two mortgage companies that wouldn't make me wait 6-12 months first. I can do this immediately for contract plus improvements and after a year do an appraisal for the rest. One bank is willing to do an extra 10% to my 80% with an in house 2nd after the cash out.
I was wondering if anyone else in a simular cash paying situation has run into this or have found someone to appraise immediately on a first cash out.
Any input would be appreciated!
Thanks,
Angie
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME" 
In this type of economy, no one will do basically a refi and cash out at 100%. They want to know you have money to lose as well if you default. And if you default, they have some equity in the property so they can get the property sold.
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HI, I guess I should have clarified getting 100% of my money back. Not the loan amount. I bought 15% under plus did improvements. When the appraisal is done that would put it over what I paid by about 20-30% therefore adding up to 100%...it's getting an immediate appraisal rather than contract price plus improvements...thanks.
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME"
I was interested in doing something like this... buy for 65-70% below market value with a cash lender, then immediately refi for 80% of the appraised value.
Let us know how it goes.
Travis
I will keep you posted:)
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME"