Posted on: 18th Jan, 2010 07:32 am
I have a recently purchased rental with positive cash flow
that I paid for in full, using a heloc from my residence. What's the best way to get cash from the mortgage free rental property, and what LTV can I hope to get with very good credit?
that I paid for in full, using a heloc from my residence. What's the best way to get cash from the mortgage free rental property, and what LTV can I hope to get with very good credit?
you purchased a rental property for cash (using the money from a heloc on your current home.
fha mortgage is not possible becasue that is only for owner occupied properties.
fannie mae and freddie mac mortgages do not permit cash out refinances
on properties that present have no mortgage balance, for a period of at least six months.
after six months fannie mae permits a cash out refinance based on the lesser of the appraised value or the purhcaes price.
after six months freddie mac allows cash out refinance for the appraised value (so, this is better if you bought at a low price or bought and improved the property)
have you owned investment property before??
freddie mac will require two years of investment property management experience if you need the rental income to qualify for the mortgage.
fannie mae may or may not require two years management experience if you need the rental income to qualify for the mortgage.
not knowing if you own other rental properties, neither one will allow a mortgage on more than four financed properties in your name.
neither one requires two years management experience if you do not need the rental income to qualify for the mortgage.
one family invetsro cash out can be to 75% of value and three to four family maximum cash out allowed is 70% of value.
there may be portfolio loans available from local lenders who use their own money and have their own guidelines. you will need to note the state and how many units to maybe get some local portfolio lender guidelines.
fha mortgage is not possible becasue that is only for owner occupied properties.
fannie mae and freddie mac mortgages do not permit cash out refinances
on properties that present have no mortgage balance, for a period of at least six months.
after six months fannie mae permits a cash out refinance based on the lesser of the appraised value or the purhcaes price.
after six months freddie mac allows cash out refinance for the appraised value (so, this is better if you bought at a low price or bought and improved the property)
have you owned investment property before??
freddie mac will require two years of investment property management experience if you need the rental income to qualify for the mortgage.
fannie mae may or may not require two years management experience if you need the rental income to qualify for the mortgage.
not knowing if you own other rental properties, neither one will allow a mortgage on more than four financed properties in your name.
neither one requires two years management experience if you do not need the rental income to qualify for the mortgage.
one family invetsro cash out can be to 75% of value and three to four family maximum cash out allowed is 70% of value.
there may be portfolio loans available from local lenders who use their own money and have their own guidelines. you will need to note the state and how many units to maybe get some local portfolio lender guidelines.