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Cash out on investment property

Put in a loan request for cash out on investment property located in Indiana.  The property is currently held in an LLC.  In order to get the best terms we are willing to move the property into our personal names.  Will we still get credit for owning the home for a year so we can use the appraised value?  We bought the home a year ago out of foreclosure.  At that time we only paid $20,000 for the home.  the bank appraised it at $65,000 but would not use that value because we had not owned the home for a year.  Looking to do about 80% LTV on the true value of the home.  Any suggestions?  Both members of the LLC will be co-borrowers on the new loan.  Both have significant income and credit scores above 700.

What if any options do we have to cash out?  Can it be kept in the LLC?
  • February 03 2010 - Franklin
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Answers (1)

This could be a little tricky. Not too many lenders will do cash-out on an investment property, so you may be somewhat limited by programs.

The ones I deal with would require you take it out of the LLC, and may require that you show ownership of the LLC that the property was in for seasoning.

Generally you need good scores and the max LTV that I know of is 75% in this case.

This is just general information and will vary depending on your personal circumstance.

I would be more than happy to assist you further if you like. Just visit my website at [content removed by moderator] for an application and contact info.

Scott
  • February 03 2010
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