I am getting an FHA loan. once I own the property how soon can I pull equity to purch another property?
Me and my girlfriend are purchasing a 3 unit property under an fha loan. this property will have equity as soon as we purchase it. I would like to pull that equity and use it to purchase another multi-unit property because the area I am in is full of foreclosures. A mortgage person we are talking to is telling me I have to wait a year before I can do something of that nature. I feel anything is possible and I dont see why i wouldnt be able to do so. Any thoughts
Tags: another, Equity, Getting, Loan, once, Property, pull, purch, soon
2011/08/11 at 22:05:06
3 Months to my knowledge. Of course, I’d check with one of my lending partners first, but I’d say it okay.
Good Move, there are many folks doing just that same thing right now, and it’ll pay off in the end.
2011/08/11 at 21:53:28
Most lenders right now will only go off of the purchase price of the home for the 12 months following the purchase. For instance, if you buy a home for 300k, but it appraises for 400k, lenders will only credit your value as 300k for 12 months following the purchase. Some of them may go down to 6 months. This is called seasoning, and things have gotten a lot tighter in this regard because of declining home values.
The days of anything being possible in the mortgage industry are long gone.
2011/08/11 at 21:02:26
My last house was an FHA financed home, and I sold it 6 months after I bought it. I was never told I had to wait a year! You have instant equity…
I pulled equity immediately to fix up the place…
It all depends on your lender though, your mileage may vary here.