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I want to refi with a conventional loan from a land contract.

I currently have a land contract with a balance of 50 k. I want to refi and pull out 180k and use 50 to pay off the land contract. The house appraised for 210k 8 months ago. Is this possible? by Obrandon01100 from Ripon, Wisconsin. May 28th 2018 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,811 contributions

I am not aware of ANY traditional loan that will let you take cash out when paying off a contract for deed. Have no clue why that is a rule... but it is. You can probably find a higher interest non-conforming loan that may allow that. For contract for deed refinancing in MN, WI, and SD, visit me at www.JoeMetzler.com

May 28th 2018
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If I owed 180 on the land contract could a conventional loan buy it out?

May 28th 2018
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Mike Silkworth (msilkw_195_870)
#30 ranked lender in Michigan - 527 contributions

You really want to speak to a local lender to find out your options. You may not be able to borrow as much as you state in your inquiry. Speak to friends a family to find a local loan officer that knows your market and can help you maximize the amount of money that you can borrow. Good Luck ... :)

May 29th 2018
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,479 contributions

Much more info is needed to address your question. As others have said,, you cannot do a cash out on a home with a "Land contract".. you can do a "Rate and Term" refinance.. so if you owed $180K, and the appraised value is now $210K.. then FHA or conventional will work.. but if you are looking to do a cash out, then you will need to either pay off the loan by using your cash funds or by refinancing.. then after 6 months, you can do a cash out refinance.. but even for this loan, assuming it's your primary residence, you are restricted to 80% LTV with conventional if you don't want to pay a monthly mortgage insurance premium. Otherwise, you can go FHA,,, they will allow up to 85% LTV on a cash out refi.. but you will have MI.. If you have VA benefits available to you, then VA allows for 100% cash out refinance,,, Again, lots of scenarios, but which one will work for you is anyone's guess,,, I suggest you pick up the phone and contact a mortgage pro and let them look at your complete loan profile,, it's takes 5 minutes, and no more guessing.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

May 30th 2018
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