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Loan Option

I have an investment condo that I own w/o a mortgage. With the current housing market, what is my bet to get say $25-$50k out of the property. With the market the way it is, the condo is worth $75k. The condo is located in Massachusetts.

I want to use the $$$ to either improve it or use the funds for down payment for another condo.
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March 28 2011 - Town of Clinton
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Answers (6)

As long as your ratios are in line you should be able to get cash out to 75% of the appraised value.
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March 29 2011
FICO is close to 800.
Current ratio is 80/20 for owner to investor ownership
Clinton Place
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March 29 2011
one thing to note, many lenders will require you to explain what you plan on doing with the cash out.  In your case, taking on more debt by using that money as a down payment on another investment property will most likely need to be disclosed and factored into your debt ratio on this loan.
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March 29 2011
From a Realtors point of view.  Investors are buying up the condo's and renting them out.  There are more renters now.  I would suggest not fixing it up too much unless you are going to sell it.  If you have renters keep them. 
If the numbers make since and up are making money each month I would buy another.  One of my clients bought 11 last year and buying more.  Where is your condo?  Good Luck
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March 29 2011
You will need a 700 fico and will be capped at 75% of the current value...Provided the condo is warrentable.
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March 28 2011

Assuming all your other qualifications are strong, the key will be to determine is your condo is warrantable.   If it is, you should have options to cash out.   Many condos is that price range are non-warrantable, so if that is the case it becomes much tougher to find financing.

The primary items to determine warrantability include

What % of the units are owned by investors?
What % of the units are delinquent on HOA dues?
Does any entity own more than 10% of the units?
Does the HOA budget allocate 10% for reserves?
Is the insurance coverage sufficient?
Is there any pending litigation?




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March 28 2011
 
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