Who will fund Cash-out Refinance? See details

[Antonio H.]

Are there any additional options on lenders that will approve and qualify a refinance on a property I just acquired less than 180 days ago(two weeks ago to be exact)? I just acquired a property w/no mortgage, & was pre-approved for the Loan. Then the loan officer says “((According to the guidelines, it appears you are not eligible to do a cash out refinance for 180 days. I looked at doing a renovation loan for you to do the updates to the house you would like to do, but you would not be able to take cash out at closing to pay for taxes that are in the arrears or the landscape/mowing lien on the property. You would need to be able to bring that to closing to close on the loan.))”

So my question is, are there any lenders that may look at the deal and approve a loan based upon the deal. The tax sale date is less than 40 days away. What are my options? If you understand and agree with the lender please explain why. I am always willing to learn.

[Shaun Weekes]

Originally posted by @Antonio H.:

@Shaun Weekes - thank you for taking the Time out to investigate. What would have been the best verbiage for the acquired property? A gift

 A gift discounted at 50% or something like that. Then you would have a purchase price of 61K, and the lender would have based their numbers on that sale price. 6 months is based on new appraised value or in your case the actual value of 132K. 50% was just an example, it could have been 30% or 25% or whatever. You just need enough to pay those taxes.

If it's a family member or a " close friend " then you could also have added yourself to title and executed a refinance in your name only and have the seller quit claim off at that point. Or you could have added yourself to title, pay off the taxes and then refinance. I'll find out tomorrow but that $5 purchase contract is what I'm concerned about.

A gift of equity though is always a solid way to get this type of deal done.