If I buy a $425,000 with a 20% down payment ($85,000) how soon use the equity for purchase of another property

Question

I would like to refinance and use the equity (down payment and any other value property gains from fix-up work) to purchase a second property, what I want to know is how soon can I use the equity in the first house (Can I refinance a week after purchase?)

Answer 1

OPM YOU ARE WRONG Buying a home funds at the table no three day period. You can use the equity right away but you only have $85000 equity. To use a new value for the home most banks have a min of 6 months of waiting time. You can refinance a week after purchase but why not do it right the first time?? Make sure that there is NO PRE-PAYMENT If you have any questions please email at [e-mail]

Answer 2

Yes and no. The equity is immediately available to you, though you may be required to carry private mortgage insurance. That is the yes.

The no is the speed. Even if it is with the same lender, they are required to give you three days from when you sign the note to change your mind. When you add documentation time, mortgage or deed of trust filing, and so forth, it is unlikely you could be done in a week unless you had planned the equity loan to close with the mortgage.

I am presuming in the above that this is your residence. If it is not, then the rules are different. It would then depend, at least partly, on the commercial lending policies of your bank and the region in which you live.

Answer 3

Yes you can refinance right after you purchase. Keep in mind that the rates go higher as the cltv (combined loan to value goes up)
You need a mortgage broker who knows which lenders will allow you to use for your situation