The original appraisal must be utilized. If the borrower is trying to take advantage of the new value, he must wait for six months to pass.
If he paid cash and wants to pull his cash out? This is termed delayed financing.
Depending on loan amount, you can pull up to 80% of the original investment out of the property.
You will be required to provide a new appraisal, but the purchase price must be utilized for 6 months.
The problem is that if the property has gone up in value we may not give you credit for that. Also if it has gone down in value we probably will count it against you. I know it is not fair.
Best of Luck!
The CA DRE does not allow unlicensed persons to engage in RE activities nor do they allow unlicensed persons to engaged in mortgage loan activity. I strongly suggest that unless you are properly licensed, that you refrain from giving advice about the subject; especially when the advice is blatantly incorrect.
Also, as others have pointed out you need a certain amount of equity in order to refi, and most of the ones we have seen require 25% equity. Check with new lender(s) on that and make your decision from there.
Lance King/Owner-Managing Broker
Please let me know if you need assistance.
Feel free to contact me for more information.