Business funding
Refinance & Cash-Out
Replace the loan on a property you own, and take equity out if you need it.
General qualification guideline; lender and program requirements may vary.
Best forAn owner replacing existing financing, or pulling equity out of a property they already hold.
Overview
The loan you have, replaced by the one you need
A refinance pays off the existing loan on a property and puts a new one in its place. If the new loan is larger than the old one, the difference comes to you at closing — that is the cash-out. If it is not, you are simply changing the terms.
People come to this from two directions. Some have terms that no longer suit them. Others have equity sitting in a property and something specific they want to do with it. Both are the same transaction underneath, and the second is frequently the cheapest capital a property owner can reach.
Benefits
- —Replaces an existing loan with terms that suit the situation you are in now
- —Can take equity out as cash, or simply improve the terms
- —Works across primary residences, second homes, investment property and commercial
- —One property can fund a completely different objective
- —Often the cheapest capital available to someone who owns real estate
Good for
Situations where it tends to fit
Property types and permitted uses depend on the lender and program.
Documentation
What you will typically need
Documentation centers on the property and the loan you already have:
- —Property address and details
- —Your current mortgage statement
- —Proof that you own it
- —Homeowner’s insurance
- —Income documentation, unless the property’s own income is what qualifies it
- —Entity documents if title is held in an LLC
- —Government-issued ID
Qualification factors
What generally matters
- —How much equity is in the property, and how much would remain after the cash-out
- —How the property is used: primary residence, second home, rental, or commercial
- —Property type and condition
- —Credit profile
- —Income or, for investment property, the property's own income
- —What the money is for
- —Lender / program guidelines
How much equity a program wants left in the property varies widely by lender, by property use, and by loan type. We will tell you what is realistic for your property rather than quote you a number that may not apply to it.
Common questions
Refinancing, answered plainly
What is the difference between a rate-and-term refinance and a cash-out?
A rate-and-term refinance replaces your existing loan with a new one on different terms and you walk away with roughly the same balance. A cash-out refinance replaces it with a larger loan and hands you the difference. Lenders generally treat the two differently, so it is worth being clear which one you are after.
How much can I take out?
That depends on the property, how it is used, and the lender's program -- there is no single number, and we will not pretend there is. Tell us roughly what the property is worth and what is still owed on it, and we will come back with what is realistic.
Does it have to be an investment property?
No. A primary residence, a second home, a rental, or commercial property can all be refinanced. Which programs are available to you depends heavily on which of those it is.
Can I use the money for my business?
Often, yes, and it is a common reason people do this -- real estate equity is frequently the least expensive capital a business owner has access to. The lender will usually want to know the purpose.
Is this the same as a HELOC?
No. A HELOC is a line of credit secured by your home that sits alongside your existing mortgage. A refinance replaces the mortgage itself. We work with both, and which one makes sense depends on your existing loan and what you are trying to do.
Equity sitting in a property?
A few quick questions and we will tell you what is realistic for that property.
The guidelines on this page are general guidelines only — not guaranteed lender approval requirements. Requirements vary by lender and program. TK Capital Solutions is not a lender; all funding is subject to lender underwriting and approval.