All Forum Posts by: Alexa K.

HI Alexa,

Your concerns can be summed up to:

1) will your income, credit, and assets (property value, reserves, equity) qualify at the time you apply for your refinance

2) will the property appraise at the value you need during the time you order your appraisal to get out as much as you'd like out or payoff your current loan payoff (with out having to bring cash in to pay down your loan to the appropriate loan amount/ LTV)

To negate the risk on #1 you can have a lender review your scenario upfront and plan for the anticipated new income/credit/assets 7 months down the line since things may be different then vs today.

To negate the risk on #2 make sure you look down the line at the active inventory, pending inventory, days on market, and where the market is going as this will give you an indicator of the sold properties 6-7 months down the line. Appraisers generally use the most recent comps within 1/4, 1/2, and 1 mile radius from your property. You can also have cash reserves in the event your property doesnt appraise as high as you'd like so you can pay down your loan to the appropriate LTV to get your refinance to go through.

Hope that helps, best of luck! 

@Alexa K. lots of good comments here but just in case I wanted to post a couple of additional comments (please forgive me if someone mentioned these...I might have overlooked it with so many comments.

If the "delayed financing rule" of 75% or purchase price is too restrictive you can create a LLC to lend you the funds. This is for a Fannie/Freddie type of loan since portfolio loans might not even have the "delayed financing" rule depending on the bank.

I wrote a pretty lengthy article on this HERE.  Read the 3rd section since I think the first two sections were handled pretty well in the comments.

Feel free to tag away with any questions.  Thanks!

Alexa K. Ok, I understand what the seller is asking for. Ultimately they don’t care if you get a mortgage or not. The seller is assuming you can’t get a mortgage on it. That doesn’t mean that will accept an offer other than cash. But you are over complicating this. In that price range it’s likely to be difficult, but not impossible. Private lenders, or a package loan with other property comes to mind immediately but I’m sure there are other ways as well.

With that said though, I didn’t realize we were talking about homes in the price range of 12-15k. If you have decent credit and job you can get a personal loan for that amount or even a credit card with cash advance capabilities... I’m not telling you to use these methods, but if you can’t afford to lay out 12k cash for an investment you probably shouldn’t be doing it. There are a number of repairs I can think of like roof, heater, AC that can all of the sudden break down and need replacement which will cost about half as much as the entire house.