Cashout Refinance on Duplex LTV 70%??

[Jared L Getz]

Well, I got some bummer news today that I just wanted to confirm with some experienced investors . The maximum cash out refinance LTV on a duplex is only 70%?? I do not reside at the property, it is completely a rental property with 2 units.

I'm expecting to be ready to purchase another multifamily property within the next 6 months, and I was planning (thanks to this forum) to cash out refi and use that money toward the down payment of that new mortgage. Because I have a conventional loan on my duplex, and I will be living in my next property, I will be eligible for the FHA at 3.5% downpayment.

My home value is 100,000

My mortgage balance is 72,500

I was contacted by a loan officer recently who had informed me that max LTV on my rental was 80%, however today another company told me it was only 70%, and I did find an article online stating that was the case.

Obviously 70% of 100,000 is only 70,000.  If my balance is 72,000 then obviously there isn't anything left to cash out.  Am I only going to be eligible for a conventional refinance? Should I keep my mouth shut and see what happens with the lender that stated 80%??????

My current interest rate is a ridiculous 8.125%, so I plan to refinance no matter what. If I am unable to cashout with this refinance, does anyone know if I would be able to get a HELOC or even just a home equity loan somewhere within a few months of a conventional refinance??

Or is there another route I should try and pursue in order to tap into the equity that I do have? Any thoughts, comments, or suggestions would be appreciated.  Thanks in advance!!