can i buy a property all cash for a quicker close,but then finance the property to get back that cash?
Sunday, September 25th, 2011 at
6:04 am
i want to use my heloc to grab hold of a great deal with built in equity and buy it all cash, but then I want to finance it after close so I can pay back my heloc and collect rent to cover the mortgage. please advise how I can structure this?
Sell House Quick
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Tagged with: finance • Heloc • mortgage • Rent
Filed under: rent property
sure, alot of people do that
lots of investors buy it cash, then fix it up, then refi it out to 70 LTV..that way youre not taking everything back out of it, and the lender looks favorably on you doing this with an investment property.
plus, it will be fixed up, and worth more, youll get a fair amount back on refi
The answer is absolutely you can pay cash and then finance after the fact. I work for a commercial bank and have clients that use HELOCs for that purpose all the time.
After making the purchase with cash from your HELOC, contact your local bank or mortgage broker. They will be able to get financing into place for you almost just as if you are purchasing it. However, because you already own the property it will be considered a cash out finance. It will also be considered an investment property for the purposes of underwriting. For both of those reasons the amount of lend-able equity you will be able to borrow against will be quite a bit lower than what you could expect to get for the purchase of a residence. Expect to only be able to get about 80% of the value of the property. So expect at least a 20% cash investment. Best bet is to consult your local bank/broker before making the purchase to get some ball park figures and a potential pre-approval.
Zoals andere zegt, absoluut ja. Het probleem, zoals men nota neemt van, is dat it' ll wordt nagedacht geld-uit herfinancier.
Het werk met een goede hypotheekmakelaar, en u shouldn' t heeft om het even welke problemen. Enkel maak absoluut zeker dat het bezit you' het re kopen is een " grote deal." Zorg ervoor u comps controleert. Hebben altijd een uitgangsstrategie.
Goed geluk.
Ik probeer altijd om contant geld te betalen en dicht snel om de beste overeenkomsten te krijgen. I' m dat probleem heeft dat dat vandaag doet. De bank repo' s vergt 45 dagen om de verkoop te sluiten omdat zij zo onder water gezet zijn. Het contante geld en sluit snel niet is geweest van om het even welk belang voor hen. Zij zouden het eerder voor een hogere prijs verkopen en zouden de kopers een lening laten krijgen.
Well you would simply go to the bank after you purchase the home and ask for a mortgage loan. It would be very similar to a 2nd mortgage transaction. But you would still have to do a separate closing on the loan. So, I don’t understand your motivation for doing this.