Have to wait 120 days to sell after refi?

[George Moehlenhoff]

Going through a mortgage broker for my current flip.

The plan was to use hard money to rehab, refi out to a conventional, then sell.

Rehab is about 50% complete and as I begin the refi process, he's says I can list after refi but cannot sell for 120 days. Have any of you heard of this, restrictions on sale after refi?

As always, all info appreciated.

[Jon Holdman]

Haven't see that specific restriction, but not surprised. Conventional lenders expect you to keep the loan for some years, not a few months. Why not just stay in the hard money? Yes, the rate is much higher, but if you factor in the fees to do a refi, its probably not that much different. And you'll defiantly burn a bridge with the lender and broker if you pay off a conventional loan after a few months.