Ok, a few things. I assume you mean that you're looking to cash out on the condo's equity enough to have a 10% down payment for the new purchase? Are you also saying that you'll have to pay PMI on both the new purchase and the condo? Why exactly must you refinance the condo in order to qualify for the new purchase? Which one will you be using as your primary residence? Much more information is needed.
I'm not sure how ANY lender could say that they have the ability to do both loans for you, this is not true. First, one of the two must be your primary and the other an investment or second home. In either case, I can tell you for a fact that you'll need to have way more than just 10% equity on the one you'll hold as an investment property. Paying PMI on both is simply not an option.
Also, what is the likelihood that the value of your condo has increased enough in the past 2 years, so that it lends itself to refinancing?
I also would like to say that I strongly suggest you NOT consider what we call lender paid mortgage insurance. This is never a smart option over paying PMI. The fact is that lenders who offer loans without needing PMI simply offer those loans with higher interest rates to cover the cost of the mortgage insurance they'll pay for, which is why it's called lender paid MI (LPMI). The difference is that when you pay PMI, it's a temporary thing, but when a lender charges a higher rate to absorb the LPMI, it's a temporary expense for the bank, but a higher rate for you that lasts the entire life of the loan.
I really suggest you find a reliable Loan Officer who can truly guide you up the right path. I'm always available if you need someone. Good luck!
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Senior Loan Officer
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797