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I bought a house for about 80K cash and I am interested in getting the 5 yr ARM. Remmendations?

Profile picture for bholaladka86
House value = 80K
Loan request: 60K

Purchase date: aug 2009

I am interested in 5 yr ARM. Any recommendations?
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September 30 - Sacramento
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Profile picture for elizabeth_weintraub
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If this is an owner-occupied residence, you may be limited to 80% of its appraised value, and that value is subject to an appraisal. Because you paid cash, it is possible that the value is not what you hope. Many buyers who pay cash do not obtain an appraisal at the time of purchase. 

Not to mention, there is seasoning required, as Martin pointed out below.

You may need to seek out a hard-money source. On top of the loan, you will most likely pay closing costs as well. If you have the time to wait, a home equity loan might be a better choice. You may want to check with Golden 1 on that option. Last time I checked, Golden 1 had very attractive HELOCs.
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October 01
Profile picture for Martin Wareing
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bh 86,

My recommendation about mortgages is to ask about the "rules" of borrowing prior to making the decision to pay cash.  I am not scolding you, but educating you.  The situation may have been that you had to pay all cash for the home, but you also should have known upfront to make the best decision as to how long the money is tied up, etc.  I hope it is your primary as well.....  another can of worms.. With so many LO's and Realtors gasping for biz, it seems highly unlikely you could not have easily accessed this info.  I wish you well.
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October 01
Profile picture for Bentley Advisors
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Fannie guidelines prohibit a cashout transaction prior to 6 mos from date of purchase.  You might consider trying a HELOC if you need the cash now.
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September 30
The simple answer is that most likely you won't be able to get a loan at this moment since you paid all cash for the house. If you get a loan right now, it will be considered a "cash out" refinance.  Most lenders require you to wait 6 months to 1 year before they will allow that.
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September 30
 

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