All Forum Posts by: Jobee Vincent Buenaventura

Hey everyone,

I'm not sure if I'm just having brain fart or something right now but how can I make sure that when I use a cash-out refi to exit a hard money loan, I'll have enough equity in the property to get back my money and then some? 

Let's say the acquisition cost was $300,000, rehab cost is $125,000 and the property is projected to appraise for $600,000. So that's basically a $425,000 loan give or take some points/fees. Then once the rehab is done in about 6 months of financing $3,500 a month (totaling $21,000), the property appraises for $600,000 and I take the steps to do a cash-out refinance for 75% LTV which is $450,000. My loan balance with the hard money lender is probably around $400,000 at this point so will I be getting the difference of about $50,000 less closing costs/fees?

Thanks!

@Shawn Mcenteer so I did an FHA refinance to get the 80% LTV. Because it's an FHA, I was told by my lender that i refi'd with I was required to have my current property as my primary for at least 6 months. After that, I can move to another primary residence.

I just want to know if I can put offers on homes to become my new primary residence even before the 6 month. So by the time I close, I’m already out of that limitation.

@Carini Rochester this is going by the notion that I can legally put in offers and go under contract before the 6 months correct?

Hey all!

I live in NJ and I wanted to know when I can legally live in another property. I recently did an FHA refinance and am required to live in my current 2-family for at least 6 months. We closed in early November.

Therefore, I should be able to legally live in another primary residence by April (or is it May?).

My real question is if I am able to put offers on another home in January/February, assuming that I take 3 months to close (I’m not a cash buyer yet). So by the time I close, I can move into the new property without committing mortgage fraud. Or do I have to wait until 6 months to even put offers on a property?

Thanks!

@Wes Singleton I'm still living in the second unit of my 2-family and going FHA was the only way for me to get that 80% LTV. Anything else would restrict me to 75%. And no, it's not a portfolio lender. It's for 30 years locked at 2.75%

@Matthew Crivelli thanks for the tips! So I did call them about it and for some reason the LTV was changed to 78.5% instead of 80%. How that came to be, I don't know. But they said they will have it changed by the closing date.

Hey everyone! It's my first time nearing the end of the BRRRR cycle and I got a rate of 2.75% with an 80% LTV FHA. I am to be given a cash out estimate of $40,000 at closing, with a new mortgage of $2,400/mo.

Now I’m due to close on Nov, 1st and looking at the disclosure they sent me today I see that it’s $33,000 cash out.. I gave them a call and they said that I don’t have to pay any mortgages until January, plus any escrows that I had with my previous title company for the last quarter will be given back to me, which should total to near the $40,000, but is that really counted towards my cash-out?

Just wanted to confirm with you guys. As $7,000 sounds rather like a big difference. Thank you!

@Max T.

I am planning to cash out refi and yes I have forced appreciation by rehabbing. Bought at 390k, used $25k rehab, and ARVs are at 470-500k in my area

@Andrew Postell

House was 390k and I put 78k down (20%) to avoid PMI. ARV is about 470k now in this current market. Lived in one of the units for 8 months now.

@Andrew Postell

Hi Andrew,

Thank you for helping me out! I am financing this property. My mortgage is $2063/mo and rental rates go for $1500-1700 per 2bd 1ba in two-families in this town. So potential cash flow once fully rented out is pretty good.

Currently have tenants in one of the units, living in the other for now. To avoid expensive financing rates, I plan to finance it as a primary residence for a year.

And as for trying to find a different lender, I thought they all pretty much offer the same product so there’s no real reason to shop around? Please correct me if I’m wrong.