BiggerPockets

I'm in the middle of this right now. I'm just trying to do a rate and term refi out of a HML. I have good income, good credit and good DTI. I don't need the rental income to qualify, though the property is rented. I'm finding many lenders want ONE YEAR seasoning before they will use a new appraisal. I was hoping it would be quicker, but at this point, I'm just hoping to find someone who will do it with six months seasoning.

Once you actually get a lender to OK the loan, plan on 4-6 weeks for the appraisal, to get the loan fully approved and go to closing.

So, overall, 8 months, minimum, is what you should plan for.

If there's a lender who will do it more quickly, I'd like to hear about it.

Jon,

I am having a difficult time understanding why you are have the challenges that you are?

Are you trying to get this refi done using conventional/residential financing?

In my experience in Baltimore a no seasoning 70% to 75% cash out refi takes about 2 months and there are at least 8 lender who will do this.

At the risk of sounding like a broken record, I believe that every investor needs to find out who these lenders are and create strong relationships with several of them.

I hope I don't sound like a broken record or that I am being overly challenging?

Pete

My existing loan on this property is a hard money loan. The lender is a private individual, and their name appears on the deed of trust. This is just rate-and-term. I'm looking for about $87K. Property is worth $120K, according to an appraisal done before the fixup. At least two lenders, Flagstar and Wells Fargo, have turned this loan down because the lender is an individual. They say their guidelines require one year before they will take out a private loan.

You are correct that I need a good relationship with a small bank. I'm sure if I was back in my rural MO hometown, this would not be an issue. My dad's lifelong best friend was our banker there. But no such luck here in Denver. Nevertheless, I think you're correct, Peter, I need to spend some time tracking down a bank and working on a relationship.

Good Afternoon,

I am a mortgage broker and I am running about 45-60 days on investor refi's and purchase. Banks do have seasoning issues if you are trying to refi off new appraised value, but if you have documented inprovement i.e. invoices and pictures, they will take that into consideration.

I hope this helps



Michael Gillmer
Loan Officer
Nickel City Funding
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