Is it possible to refinance an investment property and pull extra money out to purchase an owner occupied home?

Asked by Rubysunset, Santa Ana, CA Fri Jun 25, 2010

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Phillip Scha…, Agent, Tustin, CA
Fri Jun 25, 2010
Yes! If you have equity and you do and good credit. I live and work in Santa Ana. My Bank of America rep says no problem. If you would like to know more stop by my Open House Saturday afternoon @ 2535 N. French!
Hope to see you there.
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Shadi Kian, Agent, Lake Forest, CA
Fri Jun 25, 2010
Hello Ruby;
Sure you can. First you have to make sure how much your investment property worth and how much money you want to pull out? You can pull out with some lenders up to 75% of the your investment property value. The lower your loan to value ratio the lower your rate. It does not matter what you buy with that cash out. You can do what ever you want to do with it. Also it has credit score and income factors that play a secondary role. So if you call me at 949-5101-1955, I will be able to meet with you I can value check your property,run some numbers and let you know who much you can cash out. How much your payment would be and how much you can buy for the owner occupied home?
Have a good weekend.
Shadi Kian
Mortgage and Real Estate Broker
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Bob Phillips, Agent, Rancho Santa Margarita, CA
Fri Jun 25, 2010
Hi Rubysunset,

A lot depends upon the price range of the property you'll be buying. If that property is $750k or less, you might be better off to get an FHA loan with 3.5 to 5% down. You'll have a lower interest rate on your home loan, and probably fewer closing costs, than obtaining loans on 2 properties.

Most good lenders will sit down to crunch the various scenarios with you, to help you decide on a course of action which makes the most sense. I have a great lender to recommend, if you need one.

Good luck in finding solutions.
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Eric Blossman, , Austin, TX
Fri Jun 25, 2010
Yes, you can. There are restrictions so I would sit down with a lender and go over your scenario. The main qualifier will be the loan to value on the investment property. If you have the equity, credit, and income, then you should be ok..

Good luck
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Emily Knell, Agent, Huntington Beach, CA
Fri Jun 25, 2010
It is possible if you have enough equity. I am not sure what the loan to value restrictions are on taking money out, it's certainly less than it was 3yrs ago. Before you go pulling money out, you should talk to a mortgage lender and see if you can qualify for an FHA loan, if you're looking for the new home (owner occupied), you can buy it with just 3.5% down & get a seller to pay your closing costs. FHA allows you to receive these funds, also as a 'gift' from family or friends. If you're buying in OC or LA counties, FHA goes up to $729,750, in Riverside / San Bernadino counties to $500K

So, please explore this route before taking out another loan on your Inv. property & thus making a higher pymt on that property.

You can shoot my lender an email and ask about taking $ out on your Inv. property, ask them "I owe X on my Inv. property and it's currently worth about X, how much can I take out?" Send your email to in the subject line just put "equity loan ?: Emily Knell" & you'll get a quick response.
562-430-3053 cell
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TheRECoach, , Orange County, CA
Fri Jun 25, 2010
Life is full of "possibilities", but void of true "opportunities". I'm sitting next to a BofA Lender who says, "Sit down with him (or your lender) and work out what is really best for you. :-)

Stay Blogging My Friends!

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Dan Brough, Agent, Anaheim Hills, CA
Fri Jun 25, 2010
It is possible but there are several things that need to be considered because getting a loan today is much more difficult than a few years ago when it comes to qualifying. Some of the questions that you will need to answer are:

Is there equity in the house and how much?
What kind of credit/FICO scores do you have?
How long have you owned the investment property?
Can you show the investment property as occupied and for how long?
Can you show proof of income and job history?
Do you own other properties?

I would suggest you call a your mortgage lender and ask this question and they will be able to let you what you will need to qualify to get this type of loan done.

Dan Brough
Freedom First Properties
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Tamera Yu, , Tustin, CA
Fri Jun 25, 2010
Yes, you can refinance an investment property and pull cash out, however, compared to an owner occupied loan, the loan to value requirements will be more strict on the investment property refinance and interest rates will be higher.

If you are pulling the money out to pay cash for the property then you will not have any issues, but if you are taking the money for the down payment on the new home, I would recommend speaking to a reliable Loan officer to ensure that you will be able to qualify for both mortages.
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