Getting a cash out mortgage on a house you just bought could be difficult.

Question: We just bought the house, but can I open a cash out mortgage on it to get some money? I need to fix some things in the home. Nothing major, but the repairs should be addressed soon.

— David

Answer: Hi David. Since you just bought your home, you’d have a hard time finding a refinance option (especially a cash out refinance option) until you’ve been in your home at least 6 months to a year. Even if you could refinance, I would not advise doing it, as you just spent a considerable amount on loan closing costs when you bought the home.

Also, you probably don’t have much equity in the home. Only HARP, VA streamline, or FHA streamline refinances are potentially available if you have no equity – and none of those loan types offer a cash-out option.

If you do have a little equity, your best bet is a home equity line of credit from a local bank. Each bank will have their own rules for their credit lines. Lines of credit offer much lower closing costs than a cash out refinance.

Or, instead of getting a cash out mortgage or line of credit, try putting a couple hundred dollars per month away in a savings account. After a year, you may have enough to do some minor repairs if you do a lot of the work yourself.

Contrary to popular belief, a loan is not the answer to everything.