Building New Home and Refinancing Condo

Building New Home and Refinancing CondoBuilding New Home and Refinancing Condo
Josephsit asked 4 years ago

Hey all, first letme thank everyone for all the work done in these rooms to help so many! 


First a little background: Like many, I lost a lot when the market crashed last time, repo, loan defaults, credit card charge offs, etc. All of this has fallen off and I am now starting to rebuild my credit. Last month I paid down my UTI from over 90% to under 30% and saw a jump of over 60 points on EQ. Last week and this week I went on an app spree and added the follwing TL’s:

Barclay Rewards: $ 2k

Chase RR Premier: $ 2k

Amazon Store: $ 800

Lowe’s Improvement: $ 300

I plan to call credit solutions or chat tomorrow for the Lowes card to get an increase, hoping for a minumum $ 5k, will shoot for $ 25k. While the 10+ inq I earned on this spree will likely cause me a little trouble, I think the added CL will outweigh it, plus I now have some real reward cards I can utilize to fit my spending! 


I am a home builder by trade, My income in 2015 was ~$ 65k and I am slated to at least double that in 2016. I purchased my condo in 2012 (March I believe) through an owner financed deal that put the deed in my name, $ 163k loan ammortized at 21yrs on a 2yr balloon. She has already renewed the balloon one time and I have never been late. I currenty owe ~$ 142k and a unit just sold in my building (same size, not as good of a view of the ocean) for $ 190k. Thinking my unit could sell or be appraised at $ 195k I am at ~70% LTV

We bought a lot and want to build a home (bought the lot through my company, I am 50% partner in, and it is on an interest only loan as part of our inventory). I am probably going to need a $ 300k loan, for a home that will likely appraise in the $ 425k to $ 450 range, again less than 70% LTV. 

We have the income to support it, likely 2016 income will be in the $ 150k – $ 175k range. 

What I want to do is refinance this condo to lower the payment (not cash any of the equity) and put it on the rental market showing cash flow, then take out the other mortgage. Is that even possible if I get my scores up over or near 700?

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