A lender is now allowing cash out refinances up to 75% of the properties value for those Orange County home buyers who paid all (or mostly) cash for their homes. It is not unusual for a wealthy home buyer to pay all cash for a home in order to close escrow quickly. But quite often they want to still get a loan on the property. The problem is, most lenders would consider this a cash out refinance. Cash out refinances tend to have “pricing hits” and higher interest rates. Also, most lenders have a limit on the amount of cash allowed on a “cash out” refinance. Now, a portfolio lender located in Southern California will underwrite this type of transaction as if it were a loan to purchase the property. No max on the amount of cash back to the homebuyer, and no hits to pricing or rate.
75% Loan to Value on a $3,000,000 loan amount
This means that if an Orange County home buyer purchases a home in Newport Beach for $4,000,000, using all cash, that home buyer can then refinance immediately and get $3,000,000 cash back. There are also options available for larger transactions. For example a home buyer could refinance up to 65% of the purchase price (or appraised value, whichever is lower) up to a loan amount of $5,000,000. This means a buyer purchasing a home in Emerald Bay for $7,500,000 could get $4,875,000 of his money back after the closing.
Super Jumbo Loan Programs Available
The lender offering this program has three and five year fixed programs. Interest only payments options are available. With this type of program the interest rate is fixed for the initial three or five year period. After the initial fixed rate period the interest rate will begin to adjust once every six months based on a fixed margin added to an adjusting index.
The Orange County borrowers “middle” FICO score needs to be at least 680, which is a relatively easy FICO score to achieve, especially compared to most other loan programs available. Underwriting guidelines are also fairly flexible for self employed borrowers.
Other Cool Features for this Super Jumbo Loan Program
- There is no maximum to the number of properties owned by the borrower.
- The borrower can take title in a business entity: loans to LLC’s, Corporation, Partnerships, and Trusts.
- Cross Collateralization – Borrowers can use multiple properties to leverage the loan amount.
The first step is to contact an experienced Orange County Loan Officer who understands the options available for this type of scenario. The loan officer should be able to quickly prepare loan scenarios with details on what options are available.
Authored by Tim Storm, an Orange County, CA Jumbo Mortgage Loan Officer – Please contact my office at Alpine Mortgage Planning for more information about an Orange County, CA Jumbo loan. 877-786-4243 x 7.
Call our office today and see how we can help you and your family.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
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