How to issue mortgage to myself so I can refinance at 80% rather than 75%

[Drew Castleberry]

So I want to purchase a property with cash and then refinance immediately. If I do this I can only do a cash out refinance at 75% LTV. However, if I have a mortgage I can refinance at 80% LTV.

I don't have any private lenders to be able to do the initial purchase with otherwise I'd go that route. So I'm trying to figure out how I can issue a mortgage to myself (as a private lender) so I can keep the benefit of buying cash, and be able to refinance at the higher rate.

Is the only way to do this through an LLC?

Has anyone else ever done this?

[Russell Brazil]

Im not too sure how to accomplish what you are asking to do.  One way around this is if you could wait 6 months, then you could do a cash out refinance on an 80% ltv based on the new appraisal instead of the purchase price.   You of course have to find a bank to do that...but it is in line with the Fannie Mae lending guidelines.  Here is a link to the Fannie Mae Eligibility Matrix.  This little chart has been invaluable to me.

https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf