Can A Sub2 Be Refinanced

Hi everyone,

My question to you experts is, once a property is acquired subject to, can I as the new owner refinance the house and pull out whatever equity in it?

Thanx

Comments(4)

  • yzerone9th January, 2005

    I'm only speaking from a broker standpoint, but usually you must be seasoned in the property at least 6 months if it is owner occupied. If non owner occupied, then you are probably looking at 12 months seasoning.

    If the value you believe the house is significantly greater than what you bought it for, the lender will usually want to see receipts for improvements.

  • myfrogger9th January, 2005

    Yes you can definatly refinance the existing loan. The person getting the loan must be on title so realize that it would be you personally getting the new loan, not the seller so you are likely going to have to deal with non-owner occupied interest rates.

    Not sure if that answer helps you but if you post more details someone can give you better advise.

    GOOD LUCK

  • mboysen10th January, 2005

    ditto myfrogger. generally you're taking properties subto that have an interest rate in place that is favorable. Also, there are some of us you look for properties with very little equity to subto. Folks with equity generally have other options available other than deeding their house over with existing financing in place. then again, it could happen.
    [addsig]

  • FutureBillionaire10th January, 2005

    Thank you very much for your helpful posts.

    Thanx

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