Should I Pay Cash Then REFI?
I am at the end of a long and arduous purchase and I just find out today that the lender is going to pull out. We are supposed to close within 4 days. I know the likelihood of getting another lender is non existent. I have the funds to turn this into a cash purchase but I did not want to do so for obvious leverage reasons. Also, these were the funds I had planned to use to re-hab after the purchase.
I am planning now to use these funds to purchase the property on a cash basis, the refi after a few months. However, this would mean parking my cash for a while and would limit me from other potential purchases.
What are your thoughts on this? With the current finance market, how difficult is it to get a cash out refinance on a Non-Owner Occupied?
Any suggestions or ideas would be much appreciated.
Thanks in advance.
JS.
is the seller willing to extend escrow so that you can get a new lender?
Maybe you can do a lower LTV loan to make more of a slam dunk.
On the NOO I am finding that we get HELOCs. BofA turned us down for 85% LTV as they said they only wanted to do 80% but called the next day to offer a 90% HELOC. The rate was .25 higher but no closing costs and no prepayment penalty. It balances out expecially since we generally hold less than 3 years
Using a cash purchase for a rate and term refinance is far easier than obtaining initial financing.
ONe of the best things you can do is get a Loan officer or broker that is very familiar with investor loans and the different ways to accomplish your goals.
I wrote and article for REIP magazine in May that addresses alternative financing and it may be available on the net.
Good Luck!
_________________
"Chance favors the prepared mind"
Randall C Wall (& Louis Pasteur)[ Edited by Stockpro99 on Date 06/22/2007 ]
Stockpro,
Do you have a link to this article?
Thanks,
JS.