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 jammin54
Joined: 30 Oct 2009
Posts: 1
1.31 Dollars($)
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 Posted: Fri Oct 30, 2009 7:54 am Post subject: Are there specific loans for refinancing existing and then r |
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We want to purchase a home that we found. We also want to refinance our existing home and then rent it. We would like to find out if there are any type of loans that exist that would help us acheive this goal.
We need to work fast on this as we are afraid the house we want to purchase will be sold before we are able to purchase it. |
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jveenstra
Community Experts
Joined: 10 Nov 2008
Posts: 340
Location: River Edge, New Jersey
85.80 Dollars($)
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| Posted: Fri Oct 30, 2009 12:08 pm Post subject: Refinance |
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When you buy or refinance a home that is your primary residence, the mortgages rates are better than if you are obtaining a mortgage on an investment property. The refinance guidelines for an owner occuppied property are also better as far as permitting higher loan amounts versus the value of the property and allowing cash out versus the guidelines for investment property.
The owner occupied mortgages require that you occupy the subject property within 30 or 60 days of closing.
Owner occupied mortgages also require that you live in and occupy the property for at least 12 months from the date of closing, otherwise, the property must be refinanced as an investor property in the first place.
If you get an owner occupied mortgage and leave the property and rent it in the first 12 months and the lender finds out about it, the lender will do one of two things:
1. Increase your mortgage to the investor rate
2. Call the loan due in full
Probably #2
To answer your question: An invesment property mortgage allows you to refinance, leave and rent the property and purchase another owner occupied house.
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John Veenstra
Senior Mortgage Consultant
Approved Funding Corp
41 Grand Avenue
River Edge, NJ 07661
800-475-0123 Ext 278
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7447
Location: bloomfield, ct
70.06 Dollars($)
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| Posted: Fri Oct 30, 2009 1:29 pm Post subject: |
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but if you describe to your lender precisely what it is you wish to do, then the original refinance loan can be considered on an investment property and you can then move on with the purchase of a new primary residence. this eliminates the possibility of getting into a jam such as john pointed out.
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George M. Akerley
Loan Consultant
860-221-5044 |
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