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

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