How long before you can cash out refinance?

1 Reply

I found a 2 bed 1 bath house with a decent outside, gutted inside. House was built in 66 I believe. Has a 1 car garage. Its listed for 5k. I'm estimating around 35-40 ,to rehab. Potentially add 1 bed, 1 bath, update garage, clean yard, add a new fence to the perimeter, rent and refi. I believe I could get over $1000 a month in rent for this property. I'm going to do more due diligence tonight.

My question is, how long do you have to own a property before being able to refi? I'm looking to use investor/hard money lender to fund the remodel and then repay with the refinance.

Most traditional lenders there's no pre payment penalty, meaning you could refinance soon after you close. Mortgage brokers may have a 6 month hold policy but double check with each different lender. Typically a cashout refi lenders will go up 75%-80% LTV.