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bobaftt1212
Virginia Tech Fan
Member since Mar 2013
795 posts

Financing questions

We purchased a small house for cash that was below the lending requirements for the banks I deal with. We renovated the house and expect that it would now appraise for enough to get financed. We will have owned it for 6 months at the end of the month. I am trying to get a cash out loan and am struggling to find options. Quickenloans is one company that has advised that they could get this done but I really would like several options. I am in TN so I am really just looking for general suggestions



LSUFanHouston
LSU Fan
NOLA
Member since Jul 2009
2949 posts

re: Financing questions
So are you looking for a home equity loan?

I'm confused by what you are looking for. You paid the house in cash. I'm assuming you paid for the renovations in cash (or credit cards). Is this going to be investment property for you?

Why do you want to get a loan on it? To replenish the cash you spent on it?

I don't think it's a refinance. It might well qualify for a home equity loan based on post-renovation appraisal, but I would imagine it might be hard to go past 80 percent?


bobaftt1212
Virginia Tech Fan
Member since Mar 2013
795 posts

re: Financing questions
they call it a refi when I talk to mortgage lenders. I just want 80% of the appraised value in cash I don't care what they call it. I don't want a heloc as those usually have variable rates. If it weren't for the tax issues I would have had my dad buy it and then just purchased it from him after the renovations were done but that pesky capital gains tax shut that down.


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
13802 posts

re: Financing questions
If you own the home it is a refi.

80% cash out is asking a lot. It seems that the house isn't really worth much so 80% cash out is a huge risk if the market turns. If you go underwater on equity and walk away you get the cash and the bank gets the house. They don't like that situation.


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