Updated over 9 years ago on . Most recent reply
Cash out conditional loan approval
Cash out refinance loan that I am working with my lender, his underwriter has approved the loan however requested some of the documentation. I can provide all of them however there's one in particular that I am willing to take anyone's advise :
- Need a letter from you stating what your intentions are for the cash-out proceeds that you'll be receiving from the loan refinancing.
I used Heloc fund on my primary home to do BRRR here. SO my intention is to get all the invested money back (purchase+ rehab+holding cost , subjected to appraised value ofcourse) then return the money back to the line and extra fund back into reserve and wait for the next opportunity to buy, basically rinse and repeat the process. Is there any red flag here that bank is looking to deny the conditional loan approval or not risking their money into another real estate deal? Just checking if anyone in similar situation and what response did they provide to the bank.