Cash Recapture – with no 6-month waiting period
Cash recapture is a nice feature for a borrower who bought a property and owns it free and clear. Maybe your borrower bought it for cash because she got it for a great price and didn’t want to deal with a bidding war and the loan process. Now, one week later, she wants to pull cash out and she wants it now. No problem!
No Waiting Period. We permit cash recapture anytime following the purchase…there is no waiting period (i.e., no 6-month waiting period like Fannie requires).
Value – Use the sales price as the value. In order to use the current appraised value, 12 months have passed since the purchase unless there were home improvements. If the borrower bought the property and made home improvements, and they want to refinance the property using current appraised value before 12 months have passed since the purchase, then we will accept a current appraised value as long as the improvements are well documented. The value will be based on the purchase price plus the documented cost of the improvements or the appraised value, whichever is lower.
Notes:
• Minimum loan amount is $300,000.
• Refinances are generally limited to 65%
• Interest Only is optional to 60%.
• Investment properties are limited to 50% LTV.
• Asset Depletion Qualification is permitted.
• Pledged Assets are permitted.
