Conventional loan to pay off hard money loan

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Raymond J. RodriguesBusiness Member
Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
4y

@Isaiah Stark you sure can. 

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    4y
    Quote from @Isaiah Stark:

    I've found some good off market deals but can't use my conventional loan to purchase these properties. Can I use a hard money loan just to get the house fast and then use my conventional loan to pay it off ?


     Do you own any other properties? 

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  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    4y

    @Isaiah Stark-  using a conventional loan to payoff a  hard money loan is  possible  .....there are some  loan top value and  program  guidelines that  need to  be  followed so get in touch with a  lender and get pre approved  for a  possible  future  refinance  plus  ask  these  questions 

    1Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    4y

    @Isaiah Stark you sure can. 

    [email protected]619-456-8311
    Helm Mortgage Corp.5125 Reviews
    WebsiteView Page
    2Reply
  • Isaiah Stark
    OP
    Member since 2022 · 4 posts · 1 vote
    4y
    Quote from @Erik Estrada:
    Quote from @Isaiah Stark:

    I've found some good off market deals but can't use my conventional loan to purchase these properties. Can I use a hard money loan just to get the house fast and then use my conventional loan to pay it off ?


     Do you own any other properties? 


     yes one single family

    0Reply
  • Isaiah Stark
    OP
    Member since 2022 · 4 posts · 1 vote
    4y
    Quote from @Dave Skow:

    @Isaiah Stark-  using a conventional loan to payoff a  hard money loan is  possible  .....there are some  loan top value and  program  guidelines that  need to  be  followed so get in touch with a  lender and get pre approved  for a  possible  future  refinance  plus  ask  these  questions 


     awesome will speak with my lender thanks 

    1Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    4y
    Quote from @Isaiah Stark:

    I've found some good off market deals but can't use my conventional loan to purchase these properties. Can I use a hard money loan just to get the house fast and then use my conventional loan to pay it off ?

     Minimum property standards to refi with an Agency mortgage are identical to minimum property standards to purchase with an Agency mortgage. So if it's purely a speed issue, yes that could work. If it's a property condition issue, it would not work. 

    A seller may be creating a speed issue to hide a property condition issue, take note. Any time a used car salesman says "you have to buy today, or this car/price/whatever could be gone tomorrow!" you should probably tell them to F off. So watch out for that. 

    2Reply
  • Kwame Amoako
    Real Estate Agent · Columbus, OH · Member since 2019 · 82 posts · 133 votes
    4y

    You definitely can, just make sure the deal makes sense on paper even with a 10% market correction 

    1Reply
  • Andrew Weiner
    Property Manager · Cleveland, OH · Member since 2020 · 268 posts · 315 votes
    4y

    The hard money lenders I know have bridge loans which is for exactly what you are talking about.  They have higher interest rates and are usually capped at 12 months but no prepayment penalty (usually a 5-4-3-2-1 or 3-2-1 step down).  Like @Chris Mason said, if the issue is speed then this works, however if you want to do a cash out refi your most likely looking at a minimum 6 month seasoning period from the purchase date.  I would add for your calculations that you might get a lower interest rate on conventional loans but you are paying for two closings which isn't cheap either.  

    1Reply
  • Account Closed
    Denver, CO · Member since 2018 · 127 posts · 97 votes
    4y

    @Isaiah Stark As a few people have pointed out this is definitely possible. 

    Are you working with a loan broker who can help you find a HML and then help to refinance into a conventional loan?

    If you can find a great investor focused loan broker they should be able to do both and can break down the process for you. 

    1Reply
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