Refinance just bought my house though?

Meri
I just bought a house that was under valued .. well I bought it 20, 000 under what it appraised for, and i was thinking about buying another place to rent out, can i refinance to buy another place? the other place is a foreclosure that i would have to pay 20, 000 of... thanksBTW i have good credit

Catalina
If the equity is really there, go see your local bank for a HELOC (home equity line of credit). there won't be any owner or appraisal seasoning but there might be a LTV restriction.Borrowing funds for a down payment is only prohibited if the borrowed funds are unsecured.

Annemarie
duh----- don't know where the guy in front of me got his information from... that is what i do all the time is use my equity from other prop. to finance foreclosures since you cant get a loan on most of them. once i have them ready to rent or sell i pay off the amount on the property i used to get the loan. the only bad side is if it is rental prop. it lowers your credit scores because you cant use rental prop. as income but they will sure use it as debt what you owe on it...

Brandon
I just wanted to comment that if you happen to live in the state of TX you can only cash out up to 80% of the property value. It sounds that when you purchase the home you bought it for 80% loan to value, meaning that you wouldn't be able to cash-out on the property any way.

Larissa
It can be done though it is usually easier if you go with a different lender since it is so soon after purchase. I suggest Hometown Banc Corp. My mom used them. They may be your best opportunity for someone to say yes. If your credit does not measure up, they don’t simply “forget to call you back.” They help you get into a credit repair program you can afford regardless of income. Check out the free evaluation form at www.totaldebtsolutionsllc.com and a Hometown loan officer will contact you

Elenora
Probably not. Most lenders are trying to discourage flipping property, so they are putting stiff prepayment penalties on those properties that have been bought within the last 180 days.The only way to find out is to read the Note (document you signed at settlement). It should be among the papers from the settlement. If you didn't receive a copy, call the lender and request a copy of the one you signed.

Andree
I'm a big believer in real estate investment. Just know that if this is not going to be a primary residence, the interest rate on investment property will be higher. See if the owner of the foreclosure (bank) will hold a contract for you at a more reasonable rate. Don't get in over your head. Can you afford to make payments on these two places if the renters move out? What if they need major, costly repairs. As long as you have the cash, go for it. Do some more studying though, you can never know enough about real estate investing.

Angie
You want to pull out the equity from current residence to buy a rental.. It can be done but, your new lender must allow no seasoning on the current residence. Which means you have not occupied or owned the property long enough to establish a paying history. This lender requirement could be anywhere from 3 to 6 months . Not to say it can't be done but, the lender will base your refinance loan amount on the purchase price and not the appraisal value if seasoning is a requirement of his investor guidelines. BE AWARE: the proposed lender will question if you have borrowed the funds for the new transaction. It is one of the questions on the mortgage application.

Alejandro
You cannot do a cash out refi so soon after you purchase a home. You don't have any equity anyway to do so. Whatever you paid for it, is what it is worth (if you are lucky). An appraisal does not determine market value, what you actually paid for it determined its market value. Most lenders have seasoning requirements anyway so even with good credit your odds are slim to none.