Cash Out Refi: No Stay, No $Pay

[Leonard B.]

Hey Team BP.

I originally posted this in the "Loan, Mortgage, Credit" forum.  Thanks @Andrew Postell for the reply. What say you all in the "Banker, Lender" forum? See below:

Hey, Team BP. Asking for a friend:

I have a friend who has a 30 year mortgage SFH she paid $150K for back in 2000; now owes $70K mortgage balance; home value $200K; wants to take $20K out to get into REI like me. She decided to rent the house while traveling on holiday for the past year (COVID did not stop her). We talked to banks and they said she had to be living in the house to refi it. Uuhhh? I don't understand. Even though she's buying it and been living there over 15 years...? Are there any cashout refi products available to her and vets like us? Some of us want to keep our houses as our (HOR) home of record, but we get around and may choose to go live in Maui down the street from Brandon Turner for a year to see what island life is about :-) and don't want the house to set emptyâ¦

‘Appreciate any feedback yall may have on this one.

Standing by,

Sincerely,