Cash out refi seasonal period

[Chris Kendrick]

Cash out question

My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.

I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.

How is anyone getting all there money back?

[Kevin Sobilo]

@Chris Kendrick, you're on the right track. A credit union or your local/regional community banks will offer portfolio loans to cash-out refi. Those portfolio loans will have a wider variety of rates and terms. Rates may be fixed or variable. The LTV might be 70%, 75% or 80%. In addition some may have a seasoning period of 1 year, 6 months or none at all!

If you need to move quickly, then you want to shop around and find out which lender has the terms including seasoning period you want.

With some who do have a seasoning period, you might ask if they will waive it if you pay for 2 appraisals and use the lower or average of the two.

With portfolio loans, the lender is lending their own money and will keep the loan. So, they have MUCH more control over the kind of terms and conditions on the loan unlike a conventional conforming loan that needs to follow strict guidelines to be resold after its originated.