How Soon Can I Legally Refinance This?
I'm curious,
I have a property I will be purchasing for $89,000 and its tax value is $131, 000, obtaining a 85% of the purchase price. Now my intentions are to go with this lender to purchase the property, then in about a months time once the title has been recorded in the county clerks office I will look to refinance with loan office I know at Bank of America. Now , the thing is this, another loan officer friend has continuously proclaimed that this is not possible as law (state law, presumably) dictates a mortgage must have met six - twelve months maturity before I can cash refinance. I would be looking to cash out up to 80% of the tax value $131,000 ( which my Bank of America loan officer says is possible).
The seasoning rule is part of the FNMA regs, not a state law. But the regs also contain many exemptions to the rules. Legally there is nothing to stop you from refinancing the day after your initial close if you can find a lender to give you the money.
unusual stuff is generally better taken care of by a local bank...how big of a hanger are we talking about ($$$ wise) if its only acouple hundred thousand, a bank can lend and not get into the real restrictive lending laws...I've seen odd jobs go through larger banks (B of America, US bank, Wells Fargo) You just have to talk to someone in their commercial lending department (generally a VP -- everybody is a vp in a bank)
Tell them what you want, ask what you need...
It will be less than $100,000, which you would think shouldn't be that big of a deal (maybe that's part of the issue...not enough involved). I put an interest note into GE Capital Aviation, too. Thanks for the thought.
Tim
Oddly enough I susupect that this will be easier to finance if you rent it out to somebody else. Showing the bank a decent cap rate should calm them down a lot. Keep renting the hanger you are in for a while.
The other alternative would be to get the builder to finance the sale, but if they are not even referring you to lenders they apparently don't think they are going to have trouble selling these.
It will be rented to one of my companies that owns the aircraft. The builder has been supposedly working with the local bank, but hasn't finalized anything (it's been 8 months or so)...we'll see...
Thanks for the thoughts.
Tim
Why wouldn't YOU offer to be tha bank here?
Golden opportunity for you to do or find the financing, taking a point or two and a good interest rate for some local aggressive investor...who'd rather be making a good interest rate rather than what the bank is payin him on his CDs.
I do these "odd" deals all the time, while the banks are looking for their *** but are unable to locate same with both hands
Good thought, John. I have considered it. Even considered using my SDIRA, but am concerned it could be construed as a prohibted transaction, since "I" (really an S-Corp of mine) own the plane...need to check with Equity Trust...
Tim
As many as your finances and credit allow.
Of topic here but I surely hope you have yourself protected legally and assetwise with these properties. More than adequate insurance would be a good start. Make sure you are not leaving yourself open
Each lender has different requirements. Fannie/Freddie has their own requirements and each lender has their own requirements. A lot of lenders don't care about how many you own, but how many they will actually FINANCE. This can range anywhere from 3-30. Also depends on how much your credit and income allows as the person above me said. You do realize that since the balances and the high credit are usually going to be very close to each other, this drags down your score.
If you use conventional financing, I believe fannie mae is 10 properties? Someone could correct me on that...but you can always go with a non-conforming loan from some non-fannie mae lender...or get a blanket mortgage and consolidate the debt...lots of options, whoever you have financed the 5 properties through, i'd ask them what their limits are...
Hi niravmd,
What are you buying in CA for $40K and $300 monthly positive?
40k properties with 300/mo CF in california!!! i havent started smoking weed just yet!!!!!
no, these are out of state. there are quite a few places where you can get these numbers, however all of them are undesirable and have no job growth. places like buffalo & detroit.
how do i get a blanket mortgage? what the the qualifications?