Take out Loan Options (trying to understand basics)

[Charlie Gruber]

I'm attempting to learn more about Take out Loan Options.  I'm finding contradictory information when perform online research.  Below are a few notes I've created.  Looking for assistance filling in gaps.  Thanks in advance and really appreciate the help. 

-Charlie

Rate and Term
- No actual money changes hands in this case, outside of the fees associated with the loan. The size of the mortgage (or hard money) remains the same; you simply trade your current mortgage terms for newer terms with longer terms.
- Can refinance up to 75% of rehabbed appraised value
- If wait 6 months can include rehab as part of rate/term loan???

Cash Out
- The new mortgage is bigger than old loan (or hard money loan). Along with new loans terms, you’re also being advanced money – effectively taking equity out of home.
- Can refinance up to 75% of rehabbed appraised value
- Typically higher cost for “Cash-out” loan then rate/term
- ??Must wait 6 months to include rehab cost?
- Typically done after 6 months of ownership

Delayed Financing
- Source or original funds must be all your own cash.
- Can “take out” amount used to purchase the home (plus closing costs). Can’t pull additional equity out.
- Can refinance up to 75% of after rehabbed appraised value
- Renovation or improvement costs CANNOT be recouped with delayed financing. To recoup these costs with conventional financing, a borrower must wait at least 6 months after their purchase and meet all cash out refinance guidelines.
- The original purchase must be an arm’s length transaction (There may be no affiliation or relationship between the seller and the buyer of the property at time of purchase).
- The original purchase must be well documented (assets used to purchase the home must be verified), and proceeds from the refinance must be applied toward the original source of funds.
- The loan amount for the new mortgage cannot be more than what the cash the borrower used to purchase the property plus closing cost on the new mortgage.