Refinance and hard money loans

[Campus Johnson]

Can I refinance out of a hard money loan?

[Stephanie P.]

@Campus Johnson

You're about to purchase a property that needs rehab and you have no exit strategy? The original HML should have quizzed you about the goal with the property and your subsequent options before they took an application.

Your title will need to be seasoned for 6 months if you want to keep the property. There are lower seasoning products out there, but 6 months is generally the minimum for decent product/rates. Your loan to value will need to be lower than 75% all in for cash out if you're using the appraised value, so hopefully you're buying the property right (meaning you've got a good margin between acquisition, rehab, carrying costs and the eventual after repair value; ARV).

Stephanie