I am considering using hard money to take down a deal, and refinancing it once it stabilizes. Every example of this I have heard so far, people have said they refinanced after a year. My question is, can you refinance under a year?
Some banks allow less than a year or what is called "seasoning". Typically only smaller regional banks do this so ask around. Also usually different rules for if used all your own money originally or if went hard/private money to fund.
I don't think Fannie Mae requires a seasoning period , banks add there own rules. Find a local bank or credit union that doesn't add their own seasoning period.
Even if a Lender doesn't require a seasoning period, they may still only lend up to a certain percentage of the PURCHASE price (rather than a fresh appraisal). In which case, if that percentage is enough to pay back your HML, then why not ONLY borrow from that other Lender?
Good luck finding a Lender who'll lend against their own appraisal regardless of how much you paid for it (with borrowed money) just days before. Treat them like GOLD! Welcome to BP...
I've never had a seasoning requirement or limited loan amount. I use local banks and all they need is the deed. Be persistent and find a local bank that believes in you.
Don't consider hard money loans for buy and hold properties. Their high interest rate, points, useless fees and having the please to take your property from you is why I will never use HML.
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