Cash Out Refinance
Home Equity
Real estate investors can unlock the equity from their rental property by cashing out accrued equity.
Such equity could be used to pay off existing loan amount on recently purchased properties or renovate.
For example, you purchased a property for $285,000 and renovated it for $120,000. The total 'as is' value today is $405,000. As time passes on this property, the market demand in the area affects the property value positively and you see value builds up progressively.
Such equity could be used to pay off existing loan amount on recently purchased properties or renovate.
For example, you purchased a property for $285,000 and renovated it for $120,000. The total 'as is' value today is $405,000. As time passes on this property, the market demand in the area affects the property value positively and you see value builds up progressively.
How do you calculate your equity?
Deduct the loan balance from the current value. If you consider the example above, an investment property purchased at $405,000 and deeded for more than 6 months could have accrued some equity. If the current value of the property is $450,000 - $385,000 loan balance, your equity is $65,000!
Apply for Refinance
Refinance: Up to 80% of the As-Is Value
Cash-Out: Up to 75% of the As-Is Value
Minimum Property Value: “As Is” Appraised Value Must be over $70,000
Credit Eligibility
FICO: 575 - 850, 50% - 75% of As - Is - Value
Seasoning: 6 months seasoning is required for investors to benefit from accrued property equity.
