Cash Discount then Cash Out Refi??

[Jonathan Napper]

Is this plausible or am I out in left field?

If I am able to buy a 75K house for 50K because I am paying with cash, can I then execute a Cash Out Refi for 80% APV bringing 60K back in my pocket? The house is fine and comps are at 75K but I was able to get a nice cash discount. Does it matter if its a rental or owner occupied?

Thanks

[Bill Gulley]

Originally posted by @Jonathan Napper:

Is this plausible or am I out in left field?

If I am able to buy a 75K house for 50K because I am paying with cash, can I then execute a Cash Out Refi for 80% APV bringing 60K back in my pocket? The house is fine and comps are at 75K but I was able to get a nice cash discount. Does it matter if its a rental or owner occupied?

Thanks

No! Not unless you found an idiot to loan you the money...LOL

Joe mentioned seasoning. A purchase transaction sets the market value, first of all, if the deal meets the definition of market value, otherwise you bought a distressed property or had a distressed seller.

Loans are made based on market value, the rule is the lower of the purchase price or appraised value within 12 months from a transaction, some lenders will go with 6 months, this time frame is the seasoning period where the market conditions may adjust, they will look to the market activity and price changes. :)