Acceptable Cash Out Loan Uses

• Paying off unpaid principal balance of existing first mortgage.
• Financing the payment of closing costs, points, and prepaid items.
• The borrower can include real estate taxes in the new loan amount.
• Delinquent real estate taxes (taxes past due by more than 60 days) can also be included in the new loan amount, but if they are, an escrow account must be established, subject to applicable law or regulation.
• Paying off any outstanding subordinate mortgage liens of any age.
• Taking equity out of the subject property that may be used for any purpose is often “OK” however you need to explain that purpose.
• Financing a short-term refinance mortgage loan that combines a first mortgage and a non-purchase-money subordinate mortgage into a new first mortgage or a refinance of the short-term refi loan within six months.
• I am sure there are other acceptable uses, and it would be case by case.
• To learn more phone me at 866-310-1112 or click Here to learn more.