Seeking information on this

[Kay Hart]

I have a multi family and I wondering if I should sell and downsize. I really want to increase my real estate portfolio but debt and credit score are hindrances. I have ideas on what I want to do but I need direction and guidance.

[Jason Wray]

Kay,

If it's a primary home and you live in a unit you can do a cash out refinance if you have lived in it for 12 months. If its an investment property you can also do a cash out refinance in as little as 6 months with DSCR. Either way if there is enough to pull out to use for the down payment you only need 3.5%-5% for a new primary home and only 15% down for an investment SFR or 2-4 units.

To take cash out of a primary you only need to have a 620 or better and for an investment usually 640-680 can land a decent rate. Bottom line is getting the cash to buy again and refinance down the road when your Fico score is higher. One thing you can do is take out a personal loan up to $50K and pay off debts before you buy a home to lower DTI and increase credit scores.

There are some tips and tricks to ensure higher credit scores like "Not paying Off credit cards" instead pay them down to or under 30% of the credit limit.  Paying off cards can lower credit scores due to removing the "revolving" months and getting the highest point increase.

If you ever want to have a quick conversation or need more info let me know always happy to help!