All Cash out refi possible?

[Richard Heine]

I did a cash purchase last week on 3-plex. I want to cash out refi based on LTV appraisal using Fannie's delayed finance exemption. But I am not clear if they currently use a straight up LTV or the actual cost of buying and fixing.

Fannie Site

"The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value)."

Where are people getting these gov loans based on ARV by appraisal?

*R

[Antoine Martel]

That is because you're looking at the delayed finance exemption.

There is another rule in there which states that you can do a cash out refinance after 6 months of owning a property based on the ARV and not the cash you have invested.