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What types of mortgages are there to get 90% value to repay a private loan used for a cash sale?

In 2006 we purchased a home/home business with cash provided from a private loan.  We now have sold our primary residence and want to get a mortgage on the other home where we will now live.  We have currently been using this home for our home business.  Can you get a 90-10 new mortgage instead of an 80% home equity?
  • May 08 2009 - West Brandywine Township
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Answers (5)

It is easier to refi if you owe no money against it, to anyone. If you owe money to a "private" party, some lenders will deem this loan ineligible for refinancing. I think this is because, it is just too hard, for the Lender, to be sure it is real, and has been paid as agreed. It is a non arms length type transaction.

The fact that you have a mortgage history, from the other loan helps but does not cure this issue. You probably need to speak with a Bank or Credit Union, that knows you, and your situation. They can fund this refi, get you a nonprivate loan, let it season, and then refi again (to a sellable agency loan) if market permits.
  • May 19 2009
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fourjs

Vance is incorrect, FHA will only go 85% for cash out, but that may be your best option as most lenders will not go above 75 to 80 per cent loan to value when doing cash out.

Hope this helps.
  • May 19 2009
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We have been using for my husband's business and my son uses it as his address when he is not living at college.  We have been paying the mortgage on our original house for 20 years.  We have been paying all the bills on the other but there is no mortgage on that now.  What are our options?
  • May 19 2009
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If you have been living in the home for at least 12 months, on the deed, and can document a payment history, we would simply treat this as a refinance.  As such, you can go 97.75% of the appraised value on a FHA loan. 
  • May 08 2009
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I'm a little confused.  Is the house free and clear right now?
  • May 08 2009
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