Hard Money too Conventional

8 Replies

Good evening,

 Has anybody taken investment property from a Hard Money Lender too Conventional?

 My Conventional Lender is stating that 15-20% will be needed do to the amount stated on the form.

Thanks Mark

I've seen many people refinance a HML to a conventional loan. What is your question? Seasoning to use appraised value? How much did you put down when you got your HML?

Good luck with underwriting! 

HML is short term and based on equity for approval, whereas conventional may be more long term but be prepared for stringent underwriting and all which that encompasses.

I underwrite a few every month- we're linked up with a local community loan fund. Not sure I understand your question though but yes, we do them.

Talking with Conv. Lender, States the amount financed by them would be 80-85% of Appraised or Purchase Agreement.


I am closing my first hard money loan tomorrow. Title company is not freely producing a HUD-1. I know that cash deals are exempt from requiring HUD-1s, but we would really like to understand amounts that we have been charged and those that the seller is being charged. Is this unreasonable? Should we accept, "We don't have to produce that" as a response?

As a loan officer I refinance many people out of HML and PML's, subject-to's, land contracts, and other non conventional refinances along with the every day conv to conv or fha to conv refinances as well.

I have also done a refinance out of HML/PML to conventional on my own personal dealings.

"15-20% to do what on what stated form." - no clue what you're talking about, however you'll need enough equity with regards to your payoff or loan balance from the HML/PML relative to the market value in order to refinance into conventional assuming all credit and income and assets are in line as well.

example acquistion:

buy 100k with 20k down w/ HML

property is now worth 125k

refinance your 80 loan / 125k value = 64% loan to value - LTV this will work fine you need to be at 70-80% LTV or less depending on property type/units/etc.

Let me know if you have any questions.

Good morning Albert,

That was the way I stated to the Lender,. They are telling me as an example. HML 80/20 deal done. ARV is say 120. I , let say want Conventional at 75K , I would need 15-20% down on the requested amount. This case would be 11250 to 15000.

Sincerely Mark

Good Morning,

I believe I had worded my question wrong. When I go from HML to Conventional, is this going to be an application for refi or purchase from the CML's stand point?

Thanks Mark

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