Mortgage/Refi question

[momopi]

I was laid off last year and was out of work for about a year. I used my severance pay to buy an income property, which is currently rented out.

I started working again last month and would like to refi my investment property with cash out. How long must I work at my current job before the bank would let me take a loan on the property? I've been given conflicting information (~6 months) on this topic.

 

[sgip]

If your income is commission or bonus based, you'll have to wait 12 months. If your current employer can state that you are a "permanent employee" - yes, I know no one is "permanent" but work with me here... - then you can get a loan right away.  Permanent merely means you are past any sort of probationary or training period.

Couple of other notes:

1) You've got to have owned the property for 12 months for the new or current appraised value can be used.

2) The pricing add on's (2.0 points to fee if FICO = 740 and LTV under 75%) , plus the restricted Loan To Values (75% LTV at best) means that your rate will be in the upper 5's if conforming for cost. If this was my property I'd either keep the loan or refinance with zero cash out then add a post closing HELOC.

My .02c

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