Cash-out Refi Dilemma

rpetersen

LoanSafe Member
May 31, 2017
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Hello. I am considering taking a cash-out refi on my home to cover the down payment for an investment property. It's only been about 6 months since I bought the home with 20% down and I received $6000 down payment assistance for a first time home buyer. The only conditions I'm aware of for the down payment assistance is that if you move before 6 years you may have to pay back a portion of it. So, I'm wondering, might there be any other conditions to the down payment assistance that I would have to pay it back if I refinance?
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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San Diego, California
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Yes if you refinance my guess is that you would have to pay it back. With CalHFA you would if that is the program you utilized.

What is the loan amount on the property you're seeking a cash out refinance on? There may be a way to structure it to cover the 6K depending on loan size with a slightly higher interest rate.