Can’t cash out refi

[DeAndre Mason]

So I’m in a bit of a bind, I have a duplex I’m house hacking we remodeled entire thing, new hvac, electric panels, electric main, updated plumbing, water heaters, furnace, install central air, roof. Two complete interior remodels, new retaining wall.

We bought for 200k I know there is a good bit of equity but didn’t get appraisal (~350k). The issue is I need a little capital due to another renovation but I can’t cash out refi the lender cause my credit took a dip just below 660. Now I have equity locked in and couldn’t qualify for a heloc due to credit as well. How do I solve this. I paid for the renovations with cash and now since my credit is 2 points below I can’t get money out???! Wtf.

It's a duplex that I have a primary Va loan on in my personal name. To do the cash out refi I want(leaving more cash in the deal than taking out) I would only have a $200 increase in the PITI. I also have a renter in there providing me income. But the lender won't refi me ?!

[Carlos Valencia]

Hello DeAndre, 

Are you assuming that your appraised value is 350k? For owner occupied there is some lenders that can lend you up to 90% CLTV for a Heloc. In your case this would be about 100k-115k. But you would need to qualify of course in order to go this route. Cash out refis usually can go up to 75% LTV for duplex owner occupied. If you appraise at 350k - the 75% you can possibly take out 62k. Not sure how much you need for the remainder of the repairs. First thing is try to find out how much you can qualify for and see what options are available for your scenario. Are they going up to 50% of your income or are the banks your working with now more conservative and maybe only go up to 45% or less.

@Albert Bui @Matthew Kwan