Investment Property Cash Out Refinance After Foreclosure?

turboe

LoanSafe Member
Jul 5, 2017
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3
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I have an investment property and am having a hard time finding a solution for a cash out refinance because of a foreclosure that was 3 years ago. I'm looking to do the cash out refinance to pay off some additional debt and do some remodeling to my current residence. Any advice would be much appreciated.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,094
174
63
San Diego, California
www.loansreduced.com
Hi Turboe,
Investment properties do usually have more restrictions than a primary residence for a cash out refinance and I'll mention that below. We do however have a product that might be able to suit your needs.

Investment properties usually require 7 years after foreclosure however we have a product that is just 2 years after that you may qualify for. The terms for the loan are slightly higher than normal but are nothing like hard money rates and costs.

Here are some of the program requirements:
100,000.00 - minimum loan amount
80% maximum loan to value (higher than most programs even with 7 years after foreclosure)
640 credit required
6 months of reserves (mortgage payment x 6) required to be in your account at closing
24 months after Bankruptcy, DIL, Short Sale, Foreclosure...etc.
Fully Credit/Income qualified (we have options if you are not able to meet this criteria as well)

This program is available in every state nationwide outside of Massachusetts. New York and Maine are now also eligible.

I do have a question for you before we go into detail with this program. Is there a reason we are not refinancing your primary residence cash out? FHA will go up to 85% loan to value.
 

turboe

LoanSafe Member
Jul 5, 2017
13
3
3
35
Thanks for the quick response!
This looks like something I would definitely want to take a look into. I've been turned around almost everywhere I go.

The reason I'm not pulling cash out of my primary is because of a couple reasons. I don't have enough equity in the home even at 85% and I'm not quite 3 years beyond the foreclosure yet.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,094
174
63
San Diego, California
www.loansreduced.com
Ah completely understand about the primary residence. Feel free to reach out to me at 619-379-8999 or [email protected] and I'd be happy to go over details of the program with you.