cash out refinancing

what is your equity in property? or is it free from any morgage?

you can compare cash out financing option against second mortgage by referring http://www.mortgagefit.com/calculators/cashoutrefinance-secondloan.html

There is no mortgage on the property.

I purchased the REO property about 3 months ago, all cash deal. I want to refinance the property (tenant is going to move in). But I heard there is seasoning requirement. How do I get refinancing in Atlanta GA by getting around seasoning requirement? Any details about non-seasoning refinancing would be highly appreciated.

Thanks.

Hi tigerfamous,

If you do not have a mortgage on the property, then there's no question of refinancing the property. I guess the property is free and clear. In that case, you can simply apply for a loan with any lender. The lender will look into your credit report and income before approving the loan for you. You can speak to a few more lenders of your area and get an idea about the current market rates and terms.

Thanks

Hi jamesshogg,

The issue is that lenders have put seasoning requirement on refinancing properties that were held in owner's name in less than 6 months. I have spoken to many different lenders/mortgage brokers, they all told me the same story -- they all have seasoning requirement.

I would like to know if there are any lenders who do not have seasoning requirement.

Thanks.

I like this forum

tiger, the only way in which you'll avoid seasoning is by using an alternative lending source (see "subprime"), or by consulting with a local, community-based bank or credit union - a bit less likely than "alternative."

Hi gmakerley,

What are the alternative lending sources? Are their rates much higher than other lenders?

Credit Unions might be a good choice. But I am out of state investor, so I am not sure if that works for me.

Thanks.

You'll have to be a member of credit union in order to get a loan from them.

tiger, "alternative" is another word for what i would consider the new subprime lending market. in other words, you won't find chase, bank of america, wells, countrywide, prospect and all the other "big-time" lenders willing to help you. you have to seek out a broker (probably) to find out who they know that offers out of the ordinary products.

i agree with you - being an out of state investor could be an issue with a credit union.

Hi gmakerley,

Thank you for the clarification. My guess is that it would be hard to find "alternative" lending sources in this economic situation, since they do not want to take any risk even if it may not be that risk.

Thanks.

I think if you have a lot of equity in your house, you can still try more local lenders, maybe they can help since they are more familiar with the market. Hope this helps.

I think if you have a lot of equity in your house, you can still try more local lenders, maybe they can help since they are more familiar with the market. Hope this helps.

I think if you have a lot of equity in your house, you can still try more local lenders, maybe they can help since they are more familiar with the market. Hope this helps.