Can I refinance before the property is rented?

[Chester Stoney]

I took out a personal loan to buy my first rental and now that I am almost finished with the repairs, is there any way to refinance the loan or get a new loan with better terms? (The building had about 30k at time of purchase)

[Marshall White]

@Chester Stoney

Hi Chester,

I believe this is all based on your lender. You may be able to refinance before finding a tenant but it will most likely be a much lower amount than the maximum LTV offered by your lender and the rate may be higher than if you had a tenant in place. This is all based on my experience with lenders so it may be different for you.

Just out of curiosity, since the renovations on the home are almost complete why do you want to refinance before placing a tenant?