Hard money to Conventional

[Erin Butler]

I'm asking this question at a very generic concept, hopefully someone knows the answer and I'll use very simple numbers.

Lets say I bought a home for 70k via hard money, with an ARV of 100k. The hard money lends me that 70k. I spend 10k of my own money to rehab the property.

After that rehab, I want to switch to a conventional loan. My questions are:

1. Do I have to wait an x amount of time before I can switch to conventional?

2. Do I have to put a 20% down payment to get a conventional loan, while stuck in that hard money loan or will the bank lend me 80% of the ARV of the home?

I appreciate you for reading this!

[Blake Garcia]

Bank will lend off of ARV as long as you can show a significant improvement to the property during rehab. You would only be limited by the hard money contract timeline. Possibly a prepay penalty to hard money?