Phoenix real estate investors can pull cash from their investment properties at any time, even immediately on the day after close of escrow and up to 6 months from closing. There is no seasoning requirement so you don’t have to wait to leverage your holdings and purchase additional investment homes. The following investor cash out refinance guidelines must be noted:
• HUD or closing (settlement) statement from the investor’s original property purchase must demonstrate that no mortgage financing was used and that it was indeed a true cash purchase. If the Phoenix investment property was purchased at auction then documentation from the trustee sale will suffice, but please note this investor cash out program cannot be used to close out hard money purchases that may have been used to acquire property.
• Source of funds used to make the initial cash purchase investment must be able to be documented (statement showing withdrawal and flow of cash from investor to title company or trustee).
• Arizona title search must show that no current liens exist on the investment property the investor is looking to cash out.
• Cash used from a home equity line of credit (HELOC) or a cash out loan from another investment property may still be acceptable as long as the investor cash out refinance proceeds from the new loan are used to pay off the original source of funds. The AZ title company handling the cash out refinance will be required to send the settlement funds directly to the originating source at closing.
• Maximum loan to value (LTV) limit for a property is 75% on second homes or vacation homes and 70% on Phoenix investment properties. So if the subject property purchase price was $120,000 then an investor cash out refi could be for $84,000 or for $90,000 if this was a vacation/second home not used to generate rental income.
• Please note that Phoenix real estate investors may not refinance a hard money loan with this cash out program and the loan applicant must also be the same individual who purchased the home in question (the property must not have closed in anyone else’s name or in the name of an LLC).
I work with several lenders who are familiar with these investor loan programs and will put you in touch with them to compare rates and terms. Contact me now to receive your no-obligation cash-out investor refinance package. You will then be ready to leverage your purchasing power and acquire more Phoenix investment property to boost your net worth.
Now that you know refinancing cash-out is available to investors based on income and credit score, start your FREE investment property search for a great deal in Phoenix!
