Will I be able to get an FHA 203k Refinance Loan on Auction Property I am paying for in cash?
Our lender did not close in time on an FHA 203k loan, and the auction company / fannie mae would not extend the contract unless we offered cash. A friend of ours has voluteered cash to pay for the home if we are certain of closing on the 203k loan or another loan within a few months down the road. This is a foreclosure that we are purchasing for 78,000 and we want to put in 25-30,000 to make it a great property. I was reading on the hud website that you do a cashout within 6 months of paying cash for a property and refinancing that way. Just want to make sure friend will get back money in a timely manner and we will be able to obtain a mortgage. BTW, nothing wrong with financial stats – credit – its at 720, income is at 60,000, other financial obligations at 600 for current home until it sells or is rented, no car payments, etc. So my questions are can you refinance with a 203k after paying cash and be able to cash out to pay back loan from friend? If my lender continues to work on this loan would we be able to use it if we already paid cash or modify it (lender is out of town for a couple of days otherwise i would ask him)? Is there something else out there, some other loan, that would allow us to do this if the FHA 203K would not? What kind of documentation would I need to have in order to have money paid back to me or to my friend?