Home Buying in Bridgeton>Question Details

Mja7476, Home Buyer in Bridgeton, NJ

Is it ever possible to "cash out refinance" a home purchased with hud 203k loan? If so how long do I have to own the property until I can refinance?

Asked by Mja7476, Bridgeton, NJ Fri Nov 8, 2013

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Yes you can absolutely do a cash-out refinance up to 85% of the homes value (contingent upon county loan limits). Many of my clients have done this after purchasing a distressed property (foreclosure, short sale) being that the true value was much greater than what they purchased it for; just made financial sense. Please contact me at your earliest convenience so we can weigh out your options and determine which is most cost efficient.


Kindest regards,

Paul F. Marzolla
Sr. Mortgage Advisor
(201) 957-6768
0 votes Thank Flag Link Mon Nov 11, 2013
It will depend on a lot of factors, but the first one is what type of new loan are you going to take cash-out with? For example, a freddie mac loan allows for 6 months removed from the initial loan. FHA will require a full year to base the new loan on the current appraised value.

We see a lot of clients refinance out of the 203k to avoid paying mortgage insurance. Some of them do that and then take out a home equity loan.

Bottom line is each scenario is specific, and I would need to know more about your situation to give you my professional answer. Best of luck. Feel free to reach out to me.

Joseph S. Cordova
Trusted Mortgage Advisor
Partner
NMLS 146855
Evesham Mortgage, LLC
65 East Route 70, Plaza 70
Marlton, NJ 08053
856-985-9944 ext. 103 Tel
856-304-2381 Cell
206-333-0946 Fax
jcordova@eveshammortgage.com
http://www.joecordova.com
0 votes Thank Flag Link Sat Nov 9, 2013
Hi

Yes it is typically one year. If you have more than 1 property you might be able to do portfolio loan.
Contact Craig

Craig Andriulli
Vice President
NMLS #212830
Bond Street Mortgage, LLC
NMLS #191351
Cell: 201-647-4180
Office: 201-918-4980
Fax: 201-918-4981
Email: Craig@BondStreetLoans.com
Our Word is Our Bond
BONDSTREETMTG_Logo_2
0 votes Thank Flag Link Sat Nov 9, 2013
It depends on the type of loan you apply for when doing the cash out. A conventional loan in my shop would require at least 12 monthly of payments being made which would translate to at least 13 months of ownership. But don’t narrow it down to something as constricted as a timeline, that isn’t the only requirement. Do you still live in the house? Why is there enough equity that soon to qualify for a cash out? What’s your blood type, just kidding on that one. But a cash out refi has a higher risk level therefore will warrant a very stringent review, not implying others don’t, just pointing out it is more complicated than continuity of ownership. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Fri Nov 8, 2013
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