Does "No Seasoning" financing exist?

[Leo B.]

I've read and seen many advertisements regarding No Seasoning loans. But I'm running into issues finding such a lender. I purchase a home cash and am rehabbing the property out of pocket. I would like to recoup my original investment via a cash out refinance. The property will easily meet my needs at 70% LTV. However, I've contacted numerous portfolio lenders and they are all saying they will only cash out up to 80% of the COST or FMV whichever is less. Obviously the cost will be less. And they are saying I have to wait at least 90 days up to a year from date of purchase to use FMV. Does this No Seasoning to use FMV exist?

[Ashley Pimsner]

This tidbit might be helpful, are you aware a residential property can be refinanced with a commercial lender as long as the loan is in the name of a business entity like an LLC?

The commercial lender will evaluate your "investment property" by looking at the DCR ( debt coverage ratio) being at least 1.2 and ARV ( after repair value ) of between 70-80% depending on the lender.

Using Brandon's BRRRR method, after property rehabbed and rented, thus stabilizing, many commercial lenders will refi using ARV...sometimes seasoning period is 6-12 months, but most times it takes 6 months to rehab anyway.

Ask for VP of commercial department and run your scenario by them, and you might be surprised.