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How to obtain cash against 70k condo?

My son purchase 37k condo and after remodeling I expect the value to go up to 70k. We would like to obtain a loan for a new purchase or for another business. What type of loan we have to look for, how much could be the max we can obtain and which lender to approach? Thank you.
My credit is not so good: 620-639 and he doesn't have established yet. He is full time employee, I am self employed.
  • May 18 2013 - Englewood
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Answers (2)

Hello,

There are a couple things to consider when looking into a Cash-Out Refinance on a condo. The condo must be on FHA's approved list. You can go up to 85% of the condos appraised value. If you have another lien/mortgage oagainst the condo (HELOC, Second mortgage) than you would only be able to have a loan of up to 85% of the existing lein and the new loan amount requested.

I hope this helps.
  • May 20 2013
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Profile picture for davidhawke
With credit scores in the low 600's you won't have many options.  An FHA loan is most likely the only loan that will give you cash out (to 85% of appraised value), at a reasonable rate with credit scores in that range.  However, FHA has very strict guidelines on which condo complexes can be financed.  An FHA loan officer could look your complex up online and usually determine if the unit is in an eligible complex.

Good luck.
  • May 18 2013
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