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My ex-husband has given me a home that’s still in his name. He is willing to Quit-Claim it over to me. The mortgage balance is about $345k and the value is about $500k. I also own my home. Ultimately, I’d like to buy a piece of land, build and sell the home that my husband gave me. Can I pull equity Out of the home he gave me without refinancing it or do I need to refinance the home?
You're not living in this house he's giving you, correct? Also, whose name is on the $345k mortgage?
It makes it more difficult if it's not owner occupied. It can be done (via a HELOC, or a cash out refinance), but you typically have to have a fair amount of equity in order to do those. At the place I work at, we only do 65% on cash out refinances on non-owner occupied homes. I have seen other places do 80% LTV via a home equity loan though.
I am willing to occupy the property--it's actually better located than the home where I live.
My income is about $95k and he will continue to pay for the $1950/mo mortgage on the $345k the home is sold.
Are you saying that at 65% LTV limit for a non-owner occupied that I could get no money out because the most that will be financed is $325k (i.e., .65 * $500k = $325k)? If so, do I have an alternative? I'm trying to get $50k - $60k out to purchase the land.
You don't necessarily have to move into it, you could do a home equity on that house to pull out the $60k you need, and not have to refinance. I know one place that will do it as I am in the process of pulling equity out of a rental to purchase another rental. I'm not sure if they have seasoning requirements however, since he's quit-claiming the property over to you. For the place I work at, if he gave you the property like this, it would be a 6 month seasoning before we could do a refi.
If you're actually wanting to move into this house, you could do so and pull more equity out than what you could if you weren't living there. Most places will do 90% LTV on a primary residence either in the form of a home equity loan or a cash-out refinance. Again, there may be seasoning periods depending on who you go with, so ask that up front before you do anything.
Now, I imagine at some point he will probably want you to refinance that first mortgage to get his name off of a $1900 payment he's not making, but that's another story for another time.
What state is this home located? If it is in California, there is a program that you could benefit immensely from.
The home is located in AZ.
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