Writing The Deal For Cash Out
I'd like to purchase a tri and get cash at closing. My lender will only lend at the lesser of purchase price or appraisal. I don't want the seller to know the property is worth much more. How can I do this?
Do you absolutely need cash at close? If you can wait, re-fi right after closing or take out an equity loan. IF you can't wait then use a hard-money lender to pull the cash out and then refi.
If I refi after closing I have double closing costs right? Don't I have to wait 6mos or is that just with HELOC?
If you find the right lender, you can refi the next day. Usually, you just have to show why the property has gone up in value. If you use a HML you can finish repairs and then refi to pull cash out agianst the new value of the house. This way you will have more documentation to back up the new appraisal value.
Thanks Boyd4444,
I did find a lender that would simultaneously close a second LOC. The primary lender will only go to the lessor of my appraisal or purchase price...however...my second can be up to 100% of my appraisal. I wouldn't take all of the equity but with about $60K of equity at closing, I'll be glad to tap some of it !