Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

100
Posts
22
Votes
Yoni R.
  • Investor
  • Miami, FL
22
Votes |
100
Posts

Refinancing problems - Do I have to wait a year?

Yoni R.
  • Investor
  • Miami, FL
Posted

I have a few new properties that I bought in cash and I wanted to refinance them now and roll the money into new properties. Pretty much the BRRR method. The only problem is that the mortgage broker that I am working with said that I have to wait a year before I can refinance them. Is this really the case?

To be more specific she said that I can refinance them now for 75% of the purchase price or wait a year and then I will be able to refinance them for 75% of the appraisal price. The other option is HML but they are asking for 9%+2 points at 75% of appraisal...

I would love to hear what our experienced BP members recommend doing? What is my best option? What should I do?

Thanks!

  • Yoni R.
  • Most Popular Reply

    User Stats

    9,935
    Posts
    10,791
    Votes
    Chris Mason
    • Lender
    • California
    10,791
    Votes |
    9,935
    Posts
    Chris Mason
    • Lender
    • California
    ModeratorReplied
    Originally posted by @Yoni R.:

    I have a few new properties that I bought in cash and I wanted to refinance them now and roll the money into new properties. Pretty much the BRRR method. The only problem is that the mortgage broker that I am working with said that I have to wait a year before I can refinance them. Is this really the case?

    To be more specific she said that I can refinance them now for 75% of the purchase price or wait a year and then I will be able to refinance them for 75% of the appraisal price. The other option is HML but they are asking for 9%+2 points at 75% of appraisal...

    I would love to hear what our experienced BP members recommend doing? What is my best option? What should I do?

    Thanks!

     Hi Yoni,

    It's actually six months before you can use appraised value without restriction, not 12. But there may be overlays.

    And in that first six months, using the 'delayed financing exception,' you can go right up to the purchase price in terms of loan amount, if and only if the appraised value puts that at the needed LTV (eg, you purchased all cash for $100k and the appraisal is at $140k). See above about overlays.

  • Chris Mason
  • Loading replies...