Posted by Ed Garcia on October 02, 2000 at 10:43:31:
Ann,
There is no reason you can’t refi, or pull money out of your condo. However mortgage companies are a little more cautious and conservative with condo’s when financing them.
The reason is because when the markets hot, they’re the last to go up, and when the market goes down, they’re the first to go down. The exception to this, is high dollar area’s and resort area’s.
Most lender will cut the LTV by 5% when lending on a condo and it could be a ½ higher in rate. But no you shouldn’t have any problem putting financing on your condo. The lender will view it as a cash out so you will get about 75% LTV maybe 80% if you want to pay a higher rate.
Posted by Anne-ND on October 02, 2000 at 09:23:04:
Hi Ed,
Very naive question: is there any reason that pulling $ out of a condo in which one has equity should be different from pulling $ out of a house?
We just bought a condo at a very good price for all cash, and would like to pull out everything we can. My local bank has worked with us on houses before (90% of tax assessed value or 80% of appraised value) and given us very competitive rates.
Can you discuss differences (if there are any) in financing condos vs. SFHs from the lenders point of view. The condo is in rent-ready shape, these are easy to rent. We’re in the process of buying 6 more via seller-financing in the next few weeks.