Refinancing a Non-Conforming Investment Property
Hey BP Folks,
So I am getting ready to sign the PA to get a duplex under contract, which is currently a non conforming property. It is technically not even a duplex, but rather a 2br house and 1 br house on the same tax parcel.
I would be purchasing on a land contract, with a 5 year balloon, with the intent to refinance with a traditional lender once 20% equity has been established.
Was hoping to get some advice on if this would be a risky move, from the perspective of being able to refinance with a traditional lender once I have 20%+ equity.
As I understand it, this would need to be a portfolio loan, since it would not meet the criteria to be sold to Fannie/Freddie. If banks were dealing with qualified buyers, would this be fairly easy to refinance?
Any advice would be greatly appreciated!