Can you Refi mid construction with new lender
Hello everyon! Looking to get some advice on a current project I have going. I have a property I’m currently fixing that I had financed with a hard money lender. I’m having a huge issue with them currently. First draw I requested took 3 weeks to receive, second draw took a month and this third draw they have refused to release halting my progress. Because they told me I need to be on site with the project. They were aware when I closed the loan that I work in California. But travel back and forth from the west coast to east coast. The current project is in NJ. I have a project manager that’s overseeing the entire project since I’m not there. For some reason now it’s an issue. I’m really kind of stuck on what to do since we can’t get the 3rd draw. Looking for advice or can you refinance midway through construction? Thanks for your time
Most Popular Reply
I agree with @Chris Mason, there aren't many lenders that will take on a mid-construction project. A lot of that stems from the fact that, at least in Texas, sub-contractor liens can pre-date the mortgage lien, jeopardizing first position for the lender.