cancel
Showing results for 
Search instead for 
Did you mean: 

Need Cash out from mortgage

tag
Anonymous
Not applicable

Need Cash out from mortgage

Hello,

I am looking to get a cash out equity loan to fund a project.

Total needed cash $120,000.

Available $40,000 cash in savings Need $80,000 more.

Mortgage Balance $170,000 With Appraised Value of $285,000.

Some questions. 
Are there reasonable options to take a fixed LOC for 90% LTV?
Are there any cash out refinance for 90% LTV?
I want to go conventional not FHA.
If I take out a LTV LOC at 90% would I have to pay PMI on the original note and the LOC?

DTI would be 33-36 % depending on the route I went, Credit scores are good.

Thanks, BDR


4 REPLIES 4
NC_Mtg_Loaner
Valued Contributor

Re: Need Cash out from mortgage

conventional cash out guidelines restrict your cash out to 80% LTV.

 

FHA allows you to go to 85% which might help you get what you need if your "project" increases the appraised value of your home.  

 

A HELOC from a local credit union might be more liberal in the valuation of your home. 

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 2 of 5
Anonymous
Not applicable

Re: Need Cash out from mortgage

Another question what is Maximum FRONT END DTI, to go conventional?

I would be right around 28-32%  Total DTI 33-37%

Message 3 of 5
Anonymous
Not applicable

Re: Need Cash out from mortgage

This project is directly related to increasing the value of my house. After I figure out the funding my equity will be way more than 20% and I could again refinance conventional mortgage after the project is complete....

Message 4 of 5
NC_Mtg_Loaner
Valued Contributor

Re: Need Cash out from mortgage

I think if you notify your lender of the project estimate--assuming you are using a licensed contractor to complete the work you'll likely receive a higher appraised value which may allow you to avoid needing to refinance again in the future.

 

If you plan on doing the work yourself (dyi project) then simply purchase/finance the materials, do the work and then payoff the materials invoice (or perhaps even the contractor) once the project is complete with the loan proceeds.   

 

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.