Can I refinance conventional if I pay cash for a rental property?

[Wayne Solum]

I have a deal under contract (VA foreclosure) and possess enough cash to purchase and rehab it. I live in Texas. I've heard that if I pay cash and don't use a hard money lender, I would have to hold it for one year before refinancing it conventionally.

Is this true?  The hard money costs I could save are significant considering I have enough cash to do it without.

I'm sure this has already been answered.  Please forgive me, this is my first investment property and first post on BP.

Wayne

[Upen Patel]

@Wayne Solum When you do a cash purchase, you have the option to do a Delayed Financing within 60 days. This would a purchase loan on the purchase price/appraisal. If you want to get the loan on a new appraised value, then you will have to wait for 6 months (not 1 yr), to be able to do a refi with a new appraisal.

Upen Patel

Mortgage Banker, VA Loan Specialist

National Lender, Federal NMLS# 1374243