Paterson, NJ · Member since 2017 · 18 posts · 11 votes
Hello everybody, I wanted to know how long you have to wait to refi or get a line of credit on a property when you buy the house cash or with a hard money loan? Im interested in purchasing a property cash with either my money or a hard money loan but I want to refi or get a line of credit as soon as possible. In Paterson NJ.
Investor · Milwaukee, WI · Member since 2014 · 811 posts · 420 votes
9y
The 6 to 12 month seasoning period is only if you are looking at conventional lenders. You can find no seasoning lenders but the terms will be commercial (shorter amortization, higher interest rate, balloon in say 5 years)
The 6 to 12 month seasoning period is only if you are looking at conventional lenders. You can find no seasoning lenders but the terms will be commercial (shorter amortization, higher interest rate, balloon in say 5 years)
Do you mean Interest only or from a HML institution?
Rental Property Investor · San Antonio, TX · Member since 2011 · 512 posts · 290 votes
9y
I am working on one right now that requires no seasoning period if purchased with HML or a private loan as long as there is a recorded note and deed (Texas). There are some rules about not receiving funds from sellers etc. but I was surprised to find this out. If purchased with your own money, I think the rules may change. I hope you get a reply from a lender here.
One of the benefits of having a recorded HML on a rental property is Fannie Mae and Freddie Mac do not have a seasoning requirement when they are paying off an existing loan. That means, you can record the HML and immediately start working on your conventional take out loan. Having a HML on a property helps you negate the one year wait. Realize that they will only replace the existing HML, and that most institutional lenders will not also give you cash back within the first year of ownership.
If you use cash to buy the home, some lenders will allow you to re-capitalize yourself without seasoning and some lenders will not. Talk to a few conventional lenders first. I would stick with local banks over large institutional banks. You'll have better luck with banks that can hold their own paper for awhile.
Hello everybody, I wanted to know how long you have to wait to refi or get a line of credit on a property when you buy the house cash or with a hard money loan? Im interested in purchasing a property cash with either my money or a hard money loan but I want to refi or get a line of credit as soon as possible. In Paterson NJ.
If you buy the home for all cash and do the repairs etc before 6 months is up you will probably qualify for delayed financing. But if you get any type of loan on the home you will have to wait for 6 months seasoning for new appraised value.
Hello everybody, I wanted to know how long you have to wait to refi or get a line of credit on a property when you buy the house cash or with a hard money loan? Im interested in purchasing a property cash with either my money or a hard money loan but I want to refi or get a line of credit as soon as possible. In Paterson NJ.
You don't have to wait, but sometimes there are benefits to waiting that aren't easy to identify (example - appraisers are conservative, so just because a lender doesn't have seasoning requirements, doesn't mean you will get the refinance you want if an appraiser doesn't see the short term increase in value that you believe you have achieved... Outside of conventional lending, it all depends on each lender's requirements. Some have none, some have minimum investment requirements for your cash left in the deal (skin in the game)... And oddly enough this is information you have to dig for with most lenders as refinance seasoning requirements isn't often explained on everyone's websites. I'm happy to help if you want to share some of the numbers on your transactions and what you are trying to accomplish specifically. Feel free to DM me if you want or in the thread is great too in case it can help anyone else with similar questions.
Hello everybody, I wanted to know how long you have to wait to refi or get a line of credit on a property when you buy the house cash or with a hard money loan? Im interested in purchasing a property cash with either my money or a hard money loan but I want to refi or get a line of credit as soon as possible. In Paterson NJ.
You don't have to wait, but sometimes there are benefits to waiting that aren't easy to identify (example - appraisers are conservative, so just because a lender doesn't have seasoning requirements, doesn't mean you will get the refinance you want if an appraiser doesn't see the short term increase in value that you believe you have achieved... Outside of conventional lending, it all depends on each lender's requirements. Some have none, some have minimum investment requirements for your cash left in the deal (skin in the game)... And oddly enough this is information you have to dig for with most lenders as refinance seasoning requirements isn't often explained on everyone's websites. I'm happy to help if you want to share some of the numbers on your transactions and what you are trying to accomplish specifically. Feel free to DM me if you want or in the thread is great too in case it can help anyone else with similar questions.
I'm looking at some deals and see what are my options but I'm looking to get in the game this quarter and get some deals done. I will definitely be contacting you so we can chat a bit.
Hello everybody, I wanted to know how long you have to wait to refi or get a line of credit on a property when you buy the house cash or with a hard money loan? Im interested in purchasing a property cash with either my money or a hard money loan but I want to refi or get a line of credit as soon as possible. In Paterson NJ.
You don't have to wait, but sometimes there are benefits to waiting that aren't easy to identify (example - appraisers are conservative, so just because a lender doesn't have seasoning requirements, doesn't mean you will get the refinance you want if an appraiser doesn't see the short term increase in value that you believe you have achieved... Outside of conventional lending, it all depends on each lender's requirements. Some have none, some have minimum investment requirements for your cash left in the deal (skin in the game)... And oddly enough this is information you have to dig for with most lenders as refinance seasoning requirements isn't often explained on everyone's websites. I'm happy to help if you want to share some of the numbers on your transactions and what you are trying to accomplish specifically. Feel free to DM me if you want or in the thread is great too in case it can help anyone else with similar questions.
I'm looking at some deals and see what are my options but I'm looking to get in the game this quarter and get some deals done. I will definitely be contacting you so we can chat a bit.
Nice - We have been pretty active in Patterson and NJ in general if you check us out!