Why Choose Washington Capital Partners?
When you choose Washington Capital Partners as your partner for a cash-out refinancing loan, you’ll be assigned a dedicated expert in property equity and investment portfolios to help streamline the approval process. For this specific program, your specialist works with you to find what types of equity exist in your portfolio so you can quickly and easily get a no money down loan and purchase a new property sometimes in as little as 48 hours.
Your specialist is there to support you through the process from applying to approval, and is always ready to help with any questions you may have. We’re not the typical hard money lender either. We treat our clients like they’re part of our business.
Not only will you have a partner to help you along the way, but all underwritings and consultations are always free and your specialist is there with a direct phone number so you are always in the loop. In addition to the in-house underwriter, our team also has inspectors and dedicated processing teams creating a fast and seamless process to get you approved and your property in your hands. If you’re ready to experience service like none other and get started on your next project, use the form to the right and be on your way to securing funding in no time.
Answers to Your Questions About Cash-Out Refinancing Loans
What is a cash-out refinance loan?
This is a popular option that investors and developers use to pull equity out of a property where they hold considerable equity, and reinvest that money into a new opportunity under a new loan. It’s a great way to receive funding without requiring liquid assets in the bank.
What qualifies a property to have considerable equity?
When a property is said to have considerable equity, it means that the real estate investor has made payments on their mortgage and owns 35% or more of the property’s total value.
Why use this type of loan?
Investors and developers utilize these options so they can dip into equity from current investments and use that equity towards a new purchase or opportunity. It makes a simple and fast solution when you may not have time to generate a partnership with liquid assets or when you do not have cash on hand.
Ways to Use a Cash-Out Refinance
The most common ways investors and developers use these are for:
- Purchasing another property
- Purchasing land or rentals
- Funds to support a real estate investing business
- Paying for renovations on a distressed property
What are the requirements?
To be eligible for a cash-out loan, you need to have 3 things:
- Considerable equity in a property
- A clear exit strategy (how you plan on paying back the loan)
- Letter of Explanation (a formal letter including what you intend to use the funds for)
How is the amount determined?
The amount is determined by the LTV (loan-to-value) ratio. A traditional lender will give you up to 65% of the as-is value of your property.
How many properties can I use this for?
No money down investment loans can be used for as many properties as the lender and you agree upon at the time of signing. You are not limited to one, but you do need to let the lender know before the deal is signed.
Is there a credit minimum?
Yes, typically the minimum credit score required by most lenders is 600. If your credit score is lower than that, you’ll likely have to explain your financial situation, but try to remember that low credit isn’t always a deal-breaker.
Are there any out-of-pocket costs at closing?
No; as a no money down loan, there are no out-of-pocket costs if you have sufficient equity in your current portfolio of properties. With sufficient equity, your lender can wrap your monthly interest payments and closings costs into the loan.
Cash-Out Refinance Loan Rates Guide
|Interest Rates||9% – 12%|
|Points||1% – 5%|
|LTV||Up to 65%|
|Loan Terms||12 Months|
|Time to Fund the Loan||48 Hours from Clear Title|
|Lien Position||1st Position Only|