All Forum Posts by: Jonathan Welch

So... how about a conventional (portfolio) loan with a 30 year fixed rate?  Is that a likely option from a local bank?

I purchased a home in October with a hard money loan and am nearly finished renovations.  I plan to live in the house.  The value of the house has gone up SIGNIFICANTLY due partially to cash invested, and primarily due to sweat equity.  I am being told by my mortgage broker that the only valuation that would be looked at is the original purchase price of the house because I haven't owned it for more than a year. 

Is this a "find a different lender" type of issue, or are there laws about this? I basically want to make sure I can access my equity. I'd like to take as much as I can without paying a penalty in the form of PMI or much higher interest rate.

Are equity lines different?  Can I take a regular mortgage and get a new equity line immediately after for 85% of the NEW value?  Just trying to understand options here and while I'm not new to home renovations, the creative financing party is new to me.

If you had a paid off rental house, and others with mortgages, and you wanted to use the equity in the paid off rental for a cash offer on another property, how would one do that if the DTI ratio doesn't work due to having too much credit utilization with the addition of the new loan. I.E. using all the equity available breaks the DTI ratio for the desired loan?

I'd think there exists an option for a loan of SOME sort that only cares about the value of the asset, and that the loan stays current. Is the only place where this works some sort of a private loan with a local private investor who understands your situation? I guess I'm asking for something like a hard money lender, but I don't know if they lend on assets you already own.

I guess you could put the paid off rental in a sandbox (trust, or corporation) so that the income from that rental is only counted against the debt from that rental then take basically any loan on it, but outside of that what options are there?