You’re Looking To Consolidate Debt or Pull Out Cash, So Why Choose BuildBuyRefi Over other Lenders?
We Provide the most Government Backed Cash Out loan Programs of any 50 state bank, working 7 days a week around Your Schedule, Not Ours!
If you visited other websites looking for a cash out loan, you'd notice most companies start with this one question: What is a cash-out loan?
Short answer, like any other loan it is a mortgage used to access the equity from your property for debt consolidation or cash payment to you, the borrower. You already know the answer because you found us by searching for this specific loan type. We go further than other banks by focusing on the more important aspects you want to, like, how will you get approved at a low attractive rate and term. As an FDIC Insured Bank, we provide cash out loans in 50 US states, Texas excluded.
This Conventional / FHA / USDA / VA Cash Out Home Loan Guide is designed to provide the information you need to make the best possible decision on who you choose to handle your loan. We take the small-town bank approach with the more substantial 50 state bank risk, especially when borrowers are looking to consolidate debt and improve their financial position.
We’re probably not the first company you found when starting your online search if it is, we’re lucky to have found each other first. So many lenders advertise for this property type who provide “not so great options” so let’s get right to it and offer you the answers you are seeking!
Use These Links To Skip Ahead In The Guide:
The 5 Cash-Out & Debt Consolidation Questions For An Easier Path To A Successful Loan Pre-Approval.
Respond “YES” to Each Of the top 5 qualifiers, and you’re one step closer to getting the best Cash-Out or Debt Consolidation home loan BuildBuyRefi has to offer.
Respond “NO” To Any Of These Statements, And You May Still Qualify!
(1). You don’t owe more than 100% of the value of your home.
We have a few programs that allow cash out up to 100% of the value of your home. If you believe you owe more or close to the current value of your home, applying for a cash-out loan and getting denied could work against you. However, there could be options that are available to you still. For example, if you wanted this cash out to improve your home, repair appliances, make modifications or do some remodeling, we have programs that can still work for you.
You’ll want to check out our Renovation Loan programs instead of continuing your cash out or debt consolidation. If you aren’t entirely sure about your home's value, then you may want to contact one of our bankers to get a more accurate estimate of value before giving up your search. However, try to avoid applying at multiple institutions until you get a clearer understanding of what your options are as numerous denials can hurt your approval chances.
(2). You’re not looking to use a Government Program for Cash Out In Texas.
Unfortunately, the Federal Housing Administration (FHA) and the Veterans Administration (VA) which offer some of the best cash out limits available do not allow cash-out or debt consolidation loans in the state of Texas. Due to the strict homestead act laws in the state of Texas, the only programs available to residents there would be under conventional loan guidelines, this only allows for a maximum loan to value of 80% of your homes appraised value on Stick Built Homes and Condos, and a maximum of 65% on manufactured homes.
However, our FHA 203k Loan or VA Renovation Loans could still allow you to access equity for remodeling if you are over the 80% threshold. These loans are processed as rate and term refinance loans and not considered a cash-out in Texas. These are great options to think outside the box and achieve the improvements to your home you may be seeking.
(3) Your home is Not In Need of Structural or Foundation Repair.
Another deal killer on cash-out loans are when an appraisal comes back, and there are major repair requirements on the property such as structure or foundation issues. In cases where an appraiser notes that the property is in a non-habitable condition, or there are structural issues that should be addressed, these issues would be required to be completed before closing your cash out loan. In these cases you also would want to review our Rehab and Renovation Loan programs like the FHA 203k Standard Loan, this program allows for full structural improvements and can allow up to the total FHA loan limit in your county.
Even if you owe close to 100% of the value of your home now, making modifications and improvements could allow the future value of your home to rise to the comparable newer updated homes in your neighborhood. Most importantly, this rehab loan enables you to ensure you protect you and your families safety and value of your home.
(5) Your loan request is greater than $80,000.
RARE occasions we loan down to 60k, but we have found that the higher rates below $80,000 cheat you out of getting a much more beautiful home. If you are seeking a loan under $80,000 for a cash-out loan or debt consolidation, we will review these on a case-by-case basis. You may also qualify for an FHA 203k or VA renovation loan. This loan type will allow you to upgrade your new home purchase or renovate your existing home increasing your loan amount, equity position, home value, and lowering your rate at the same time.
Great, if you answered “YES” to each of these, you passed the first part of our pre-approval test. If you have a “NO” somewhere, then call us now, or take our eligibility checker to discuss your situation. Answering “NO” doesn’t mean you won’t qualify, it just means we need to find out which area is impacting your request.
Before we discuss the programs we offer, and we offer almost every cash-out loan imaginable which meet’s the above requirements, let’s review the most important ways to make the process as smooth as possible.
First, There Are No Guarantee’s Because There Are Many Unknowns.
Anyone offering you a guarantee is probably someone you want to avoid. It’s not guaranteed until you have met all conditions and closed your loan. But let’s discuss further how you can get the results you are seeking.
If you want the best, then there’s a need for wicked fast speed, and here’s why!
Applying and getting approved for a cash-out / debt consolidation loan is only the first step in the process, it doesn’t guarantee that you’ll get the rate, terms, or program you were pre-approved initially on. There are many factors to achieving that low rate and excellent loan program you wanted, and that is “the speed in which YOU move.” Time plays against every borrower in a big way with any loan.
Learn the 4 most important reasons to “light the fire” and Take Fast Action on Your Cash Out Home Loan Pre-Approval!
Rate Locks Expire: Most loans are locked for 30 days because the shorter term allows you to get the lowest rate possible. If you lose your rate lock by letting it expire or needing to extend it because you took weeks getting the items back, it will cost you more money or a higher rate. With rates recently on the rise, a higher price could even make you no longer eligible for the loan you wanted. A long delay could require you to re-qualify for the loan again.
Programs Could Disappear: It’s happened before, we’ve witnessed a whole host of loan programs get wiped out overnight. Investors can choose to change their risk portfolio and stop offering programs altogether, that is why moving fast on the approval you have in your hand means taking action.
Your Job or Income Status Could Change: What if you lost your job, your income was reduced, or you wanted to take a new job, but it put your loan closing in jeopardy because you took too long? Any of these changes in your employment status could come back with more unfavorable terms, or worse, a complete loan denial.
Your Credit Score Could Dramatically Change: We’ve seen this happen many times before, a borrower maxes out their credit card for business, or they miss a payment because they weren’t paying attention, or judgment was filed for any host of reasons. Not closing quickly under the same credit terms is another reason for underwriters to re-qualify you or cancel the loan altogether.
The 3 steps to Achieving the lowest Debt Consolidation & Cash-Out rates possible.
Find a lender you feel confident in and apply to get pre-qualified from that lender. Make sure the lender has the program you want, and if they don’t sound confident they can close this program and have experience and reviews doing so, then keep looking! You may want to check out our reviews to help give you this confidence.
Request a rate lock on your loan once you are pre-approved and get your lender every item needed as fast as necessary to close your loan, so your rate lock doesn’t expire. Your side of the process is only complete when the loan is closed, not when you think you sent enough to satisfy us.
Take responsibility and move fast, as you know rates have been on the rise as of lately. Wait too long, and you could end up with a higher interest rate, therefore qualifying for a smaller loan amount than if you locked in faster on a lower price. It’s your job to ensure you meet all requirements, not the loan officer or lenders position to hold the file open as long as possible paying for the rate lock extension out of their pocket. Locks cost money because your lender is reserving the funds and rate you wanted. It’s your responsibility to ensure you move fast as not to let that lock expire or it could end up costing you.
BuildBuyRefi Will Loan On These 4 Property Styles For All Cash Out & Debt Consolidations.
(1). Single Family & Modular Homes
Any site built property, or modular home built and shipped to the site. There are no age restrictions on these properties. However they cannot be mixed-use, demolished, razed homes, co-op’s, investment, or on structures relocated to or from another site.
(2). Manufactured Homes
Any single-wide or multi-wide manufactured home larger than 400 sq. ft., and built after June 15, 1976. Property must not be on leased land or in a trailer park and must be on a permanent foundation.
(3). Multi-Unit Properties
Any property consisting of 2, 3, or 4 units. Side-by-side or top and bottom multi families are allowed as long as one of the units are owned and occupied by the primary borrower, meaning the primary borrower occupies 1 of the units full-time.
(4). PUDS, Townhouses & Condos
Any approved PUD, townhouse or condo must be approved or accepted by HUD, FHA, VA, Fannie Mae, or Freddie Mac. Each program has their specific guidelines that expand further.
*Modular homes are not considered manufactured homes, they fall under the same category as Single Family Home and do not have the same restrictions as Manufactured Homes. Every program available to a Single-Family Home extends to Modular.
What Does Conventional, FHA, USDA, & VA Loan Mean, And Which Do I choose?
These terms (Conv., FHA, USDA, VA) refer to the program type and more often it is decided based on what your goals are. These can also determine other factors such as location, loan amount, borrower status, and borrower’s desired transaction request. Each program has a different set of product offerings underneath it that are uniquely different. Let’s explain what these are.
These four different cash-out program types are available on the market.
Conventional Cash Out & Debt Consolidation Loans
The government does not insure Conventional loans and typically require a more substantial down-payment or equity position to qualify. There are no 100% Conventional financing programs available for manufactured homes, nor do conventional loans offering 100% financing in any category. However, you can go up to 85% on cash-out and debt consolidation. Loans 80% or higher will come with PMI for conventional loans.
Conventional loans are chosen more often when you have greater home equity, higher credit score and when you’re looking to avoid paying PMI. Conventional loans also require a lower debt to income ratio and cleaner credit profile than those of their FHA and VA counterparts. Also, something to consider, if you are a Veteran think about reviewing the 100% VA Cash Out program below.
FHA Debt Consolidation & Cash Out Loans.
FHA stands for the Federal Housing Administration; a government agency devised to help increase homeownership to those with lower credit scores, income amounts, and higher debt ratios. Because of this the FHA loans come with Mortgage Insurance and does not automatically drop off when you get lower than 80%, you will be required to refinance out of an FHA loan if you want to drop the mortgage insurance monthly premium. The FHA has maximum loan amounts determined by county location.
The FHA loan allows you to rehab or renovate (which is not considered a cash-out by their guidelines) in many cases financing over 100% of the future value of your home. FHA also allows for up to 85% cash out or when you’re looking to consolidate debt. Many clients have been able to save hundreds, if not over $1000 or more per month by smartly combining higher interest debt.
VA Cash Out & Consolidation Loans For Active Military, Disabled or Retired Veterans, and their spouses.
Some of the best benefits available to Veterans and their spouses are still the VA home loan benefits. Of all cash-out loan programs, the VA loan offers the highest loan to value, the lowest interest rates and comes with no mortgage insurance at all. More Veterans should be taking advantage of this program at every chance they can get.
Every program offered through the VA allows for 100% or higher in loan financing. Purchase, cash-out, consolidation, VA IRRRL streamline, the VA Renovation Loan (not considered cash-out) now allows up to $50,000.00 for remodeling where other lenders still offer just $35,000 for structural rehab.
The VA home loan comes with fewer reports required for manufactured homes if you have this property type, so it moves much faster, though we are wicked fast on all product and home types. You will even be able to finance large tracts of land and have certain exceptions granted that you won’t find in conventional, FHA, or USDA program types. The VA loan does not have any location restrictions or income restrictions, but it does have specific credit, DTI and loan amount restrictions based upon the properties county location.
Reverse & Renovation Mortgages.
Reverse mortgages are not traditional cash out loans and are only available for homeowners with qualifying equity positions over the age of 62. Reverse home loans are a great program type for those on fixed incomes looking to eliminate their mortgage payment and receive monthly payments to help offset higher living costs and expenses. Call or apply for one of our reverse mortgages, or read our Reverse Mortgage Guide for further clarity.
Renovation loans such as the FHA 203k, VA Renovation or USDA Repair Escrow is not cash-out and in turn, are treated as a rate and term refinance or purchase loans if used at the time of purchase. These loans adhere to different guidelines since you are not able to do the work yourself or receive cash back greater than $500.00. Please review our Ultimate Guide To Renovation Loans to learn more about the multiple 96.5% - 100% program types offered.
Generally, we want Your minimum “middle of the 3” credit scores To Be A 600 FICO or higher.
My middle credit score is above 600, what rate can I get?
Your rate depends on many factors since rates change daily, sometimes multiple times a day, the quote you receive today most likely will be different tomorrow. That is of course if you have not locked in your loan.
Borrowers with a 600 credit score may see a little higher rate than those with a 620, 680, 720, and so on. All investors offer better rates the higher your score is. They do this because those with higher scores have proven to be of lower credit risk than those with higher scores.
Many people who buy a loan with a lower credit score that has a higher rate, can raise their credit even if they took out a 100% loan six months to a year earlier on the subject property. In cases where this happens, we’re always working with our existing clients and watching market conditions to offer an internal streamline refinance.
The Streamline Refinance happens to be the most effective loan used to lower a borrower’s interest rate, and in most instances will not require a new appraisal because you are only reducing your interest rate or term. It is also possible to have a lower score like the VA streamline refinance as this loan looks at your overall improvement to your financial situation and is not relying on your credit report.
Do you loan against bad credit? What is the lowest score you accept?
Can we lend lower than 600?
In some cases, yes, we’ve done them as low as 530, but it’s incredibly difficult and let’s explain why.
Typically when a borrower has a score under 600 a few things happen.
#1. The interest rate we can offer becomes too high.
The pricing adjustments that come for lower scores and loan amounts become a high risk for the lender. And due to us offering the best programs government-backed lending has to offer, we stay away from dancing with any loan that hits what the government deems to be high costs.
#2. The borrower has limited to no credit, or the credit trade-lines they have are not acceptable to our current underwriting guidelines.
It’s even true that some people can have a 640 credit score with limited trade lines that would not get approved, but it is essential to show our underwriters you can make payments on time and are at low risk for defaulting on your home loan.
#3. The borrower could be a few steps away from a much better credit score.
It's possible that if you fall under the 600 FICO score threshold minor credit repair could help you become more attractive to lenders. In many instances, you don’t have to go through a 3rd party credit repair company as today’s lenders have tools to help you determine what moves you can make on your own to improve your score. Do what is needed and not only would you get a lower interest rate, you could qualify for a more substantial loan amount with better home options than if you settled for borrowing with worse credit.
The 5 Acceptable Income Types When Applying For A Consolidation or Cash-Out Loan.
While we accept almost every income type when verifying and approving these types of loans, the two we won’t loan on are stated income loans or bank statement only loans.
W2 Full Time & Part Time Employees
Active Military Income
Retirement, Pension, 401k regular disbursement income
Social Security or Disability income
It’s important to note that any change during the process in employment status such as getting fired or switching jobs is grounds for denial or re-underwrite. You want to avoid any change in your job status while completing your loan, and if there is the slightest chance something might change you need to speak to your loan officer immediately about this.
Do not assume that because you are getting a better offer that it will be approved. Changes like these scare underwriters and will increase the amount of documentation you get; it could delay your closing, cost you a rate lock meaning higher payments with higher rates.
You will save thousands in lost time and money by being as upfront as possible with your loan officer.
Aside From Working 7 Days A Week On Your Schedule, We’re Experts On The Most Popular Cash-Out Programs To Hit Today’s Mortgage Market!
The Truly Determined Borrower Ultimately Wants The Best Rate & Loan Term Possible, And At BuildBuyRefi, We Know Offer Some Of The Best Customer Service On The Market Today.
We Won’t Leave You Guessing What Is Going On!
You may ask, why do other lenders and even my local bank offer higher rates, shorter terms, or try to dissuade me from pulling cash out, consolidating debt, or want to stop me from doing this loan program?
That’s a great question!
Short answer, because they aren’t the experts in these type of loans and they perceive a high degree of risk on cash-out loans. This means in many situations, banks they could be scared you’re getting in financial trouble and will leave them holding a zero equity property.
The Top 3 reasons why other Lenders Find it hard to Compete with BuildBuyRefi in the Cash-Out Loan market.
#1. We have The Most Competitive Cash-Out products, rates & loan terms:
Most lenders, brokers, and banks only have a few programs, indeed not offering anything near the vast array of cash-out loan products we have. Their rates are higher and loan term shorter because they can’t touch the monthly volume we produce. They don’t offer the high loan-to-values because their perceived risk is higher with less equity in a property. You shouldn’t be stopped from utilizing your home in the ways you require, why pass up saving hundreds or thousands a month? Relieving financial stress when you have the option is one of the best ways to lighten the load and free up creating thinking for your sound financial future.
#2. We Are seasoned veterans On All Cash-Out Home Loan Programs:
Most are not seasoned veterans in the debt consolidation and cash out loan sphere, meaning the loan officer you worked with might never have closed unique cash-out loans, or helped structured you into a renovation loan when your equity seemed tapped out. You need a banker that knows how to navigate these program types to give you the best options, most of our bankers have 15-30 years experience each lending on these unique property and program types offered at BuildBuyRefi.
#3. We Don’t Discriminate On Loan Request or property type:
Your local bank or credit union may be acting like they are doing you a favor to keep you with them, but in fact, they may not want your property type or program type on their books. They may talk you into taking a higher rate saying they are making an exception to the guidelines. In this case, their inability to be competitive or desire for your loan or property type is costing you more just by staying loyal. And while we love loyalty, we feel you shouldn’t take a rate that is 2-5% higher requiring 20% or more in equity to sacrifice for that loyalty.
We’re Not Financial Advisors, But For Most Homeowners, we know how will wisely Consolidate Debt Using The Power Of your Home Equity.
Why pay more when you can spend less?
Why take longer to close your loan when you can close faster?
Why use a less experienced manufactured lender when you can use the most experienced?
the top 3 reasons to Complete A Cash Out or Debt Consolidation Home Loan!
#1. Using Cash out To Improve Property Adds Value, Equity, And Stability!
If you are looking to create more value in your property, it is mostly accomplished by improving your home through a renovation or remodel. Pulling cash out can allow you to save the money spent on contractors if you plan to do the work yourself.
A beautiful bathroom and kitchen remodeling are some of the surest ways to add immediate home value, but going a step further allows you to love your home again. Instead of stressing out over looking for a new home and fighting to sell your old house, you can learn to love everything about your property. Even if you owe almost 100% of what your home is worth, there are ways to access future equity based on the renovations you plan to do.
#2. Consolidating Sky Rocketing Interest Debt Lowers Personal Stress Immediately!
We don’t know too many credit cards that come with a fixed interest rate lower than your mortgage, but we do know that Americans are carrying astronomical portions of credit card and other debt with interest rates 15%, 19%, 25% or in many cases higher on an annual basis. When you look at paying off the monthly minimum of your credit card statement, you could be financing credit card debt much longer than a 30-year mortgage. High-interest debt is stressful for anyone who is in this position, and many hesitate using the equity in their home to pay off credit debt, car loans, or other business debt when they could consolidate.
However, when smartly structuring this debt and seeing the light at the end of the tunnel by eliminating monthly payments in the hundreds or thousands, you can breathe clearly, refocus, and put a solid plan of action to now pay off your mortgage in record time. It’s all about one step at a time, smart moves over wrong, and using your equity as a tool instead of an unknown.
#3. Cash-Out Could Be Invested In You, Your Business, Or Your Personal Financial Plan.
Do you have a bigger dream than just your home? We know most Americans do. At a time when more Americans are starting side jobs, businesses, contributing more to their retirement plans or creating long-term financial plans for their families future, there are so many scenarios where accessing the equity of your home and turning it into cash makes perfect sense.
We don’t dictate where you put your money, we want you to do so in an educated manner and use it for something that makes perfect sense for you and your family. Start dreaming about what you could be doing, turn that dream into a plan, and then put that plan into action.
5-Star Lender Reviews That WOW!
Richie, OK... so you've officially done something I've never seen in 22+ years selling real estate. Closed a VA Loan on 224 Acres, with a Manufactured Home. CONGRATULATIONS! and THANK YOU!!! Admittedly, I was skeptical (more like pessimistic) when James told me you were going to get this VA Loan completed. And I had many doubts along the way, because I'd seen so many VA Lenders fall flat on their faces, just before the Closing. BUT... You got the Job DONE! Occasionally, I find someone out there who has done an Outstanding Job, helping my Clients... and You are one of these! I'm now officially a FAN of You and Your Work. I would be honored to promote you and your services to other Agents within our company, and I intend to do so. I will call you when I've caught up on my work a bit... and learn more about how I can do my job better on the next VA transaction.
~Tom K. Realtor