From Hard Money Loan to Conventional Mortgage
Hello,
I'd love some sound advice. I am a newbie in Real Estate investing. I'd like to purchase a multifamily in New Jersey. I don't qualify for conventional mortgage. I was told that I could get a hard money loan and then refinance to conventional mortgage. How does this work? Are there strict requirements? Do I need to find a bank that will refinance after receiving hard money? Or should I find the lender first? Do you have to pay downpayment and closing cost to hard money lender? Where should I start? Is this even a good idea?
Any feedback would be greatly appreciated. Thanks in advance!
Most Popular Reply
@Tiffany Archer you may not be able to qualify for HML either. It depends on your deal. HML will usually only loan 70-80% of the deal. You have to bring the rest. If you can't qualify for a conventional loan, what makes you think you would qualify for a refinance? You need to fix whatever it is that is making you un-bankable. A conventional loan is much cheaper money than HML with a much longer amortization period.