Looking for some insights.
I just bought a house finally for myself from a foreclosure and used hard money to purchase the property; they recorded it as a mortgage. So I am renovating the house with my own funds and thought I was going to be able to refinance it but I am being told because I have a mortgage on the property I have to wait six months. So my question is if I pay off the mortgage could I then refinance immediately? If not anyone have any other suggestions to not have to wait the six months? Do I need to just keep talking to banks to find one that will?
Any help would be appreciated. Thanks
What kind of lender told you that you had to wait 6 months?
Conventional I believe
Fannie Mae and Freddie Mac both have a 6 month waiting period for cash out, but of course you can do a rate and term refinance at any time based on the original purchase price.
I'm surprised your HML let you live in the property. Usually, they're for investor properties. Did you tell him you were going to live in it when they loaned you the money or was it a family member?
There are companies that will allow you to refinance based on the appraised value, but those companies don't sell to Fannie Mae, are generally for business purpose loans and owner occupied properties don't qualify.
If you're living there, you probably have to wait the 6 months to do what you want to do.
Originally posted by @Matthew T. :
Conventional I believe
If you want a conventional loan at conventional rates, you need to be patient and play be their rules
If you need it immediately talk to a credit union or a commercial lender
Visio lending will refi it at 65% immediately
You can't cash out but can do refinance as rate and term. You can add closing cost and prepaid but not cash out.
@Matthew T no you can do it any time but no cash out although you can add closing cost for certain amount.
@ Matthew T. We do lend in Massachusetts. Try contacting small bank in your area.
Visio has a minimal seasoning period (30 days), but their seasoning period is moot because they don't lend on owner occupied properties.
The seasoning rule is clear that you're limited to the original purchase price rather than the current appraised value. https://www.fanniemae.com/content/guide/selling/b2/1.2/02.html Here's a good link.
I have a lender in Mass you can call. PM me.