BRRRR, hard money loans for rehab, refinance, no $ down?

4 Replies

I'm new and I'm sure this is ask/answered, but I want to see if I'm looking at this correctly.

Question- is it possible to use a hard money loan for a rehab, then use the equity built up in the rehab to satisfy the loan-to-value requirements set forth by traditional lenders?

I currently have enough capital saved to pay 20% down, but if the scenario above is possible, I could get away with only putting 5-7% down and saving the rest for another deal.

Thank you,


Hi @Brian Raike

We have done this before, after ensuring that we are buying with enough equity room. We were able to get a 73% LTV loan with the HML, and then the property appraised high enough to refi into a conventional loan a few months later. I feel like this was a unicorn for us in our market so I don't plan on being able to do this again :)

You still going to need to have down payment for the HML. I'm not familiar with HML to tell answer this part, but I think there is a way to do a HML and then delayed financing on the traditional route to skip the seasoning requirements. If you can't skip seasoning it's 6-12 mo before you get to use the new ARV.

@ Matt K. Thanks for the feedback

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here