I bought a house for $280K that appraised at $480K at the time I purchased it.

Question

How long does it take before I can cash out some of the equity? Are there other ways to leverage the equity?

Answer 1

It might not be worth it now. you have to get it re-appraised. Plus most banks are not willing to give it loans like that anymore

Answer 2

You can cash out right away I believe. But check with a real estate agent, who would probably help you out for free because you may give him/her some business by trying to cash out.  

Answer 3

Very few banks are doing that any more and most are cancelling the home equity lines of credit they have issued.  It's more than likely the value of your home has dropped since you bought it.

Answer 4

Lot of people answering that assume you're in a down market - not sure why as there are still some stable or even rising markets. Theres not a lot of real advice that can be given unless you tell where you are. You need to get a current value on your property, and if it is where you think it was when you bought it, then as long as you can show ability to pay off the mortgage, you should be able to get financing to release some equity. But it all depends on the current valuation. Dont listen to the naysayers that claim it can't be done in the current market if they dont know where your current market is!! .

Answer 5

1 year.  All Conventional loans (fannie Nae, Freddie Mac backed loans) require the lender to use the purchase price or the appraised value, whichever is LESS for the first year in the home.  For FHA loans.  Cash out is NOT allowed until you have 12 months seasoning (ownership) in the home.