Hey everyone! Running into a snag with financing we’d love some help with.
My fiancé and I are Brrrring in Buffalo NY and realizing the 6 month seasoning period most banks have is far too long to have all our cash tied up.
Does anyone know of a lender (besides Alden State Bank) in state or nationally that can do rehab loans without the 6 month seasoning for refinance? Is there another way besides expensive hard money?
Thanks so much!
Hi Kaja, you mention ASB and the rehab loan — there is no refinancing with this product, to my knowledge. The rehab loan is one closing (at purchase) then conversion to a mortgage once you take your last draw. Am I missing something?
Try Upstate Bank, as well. Haven't worked with them yet (due to their 54321 payoff penalty) but the terms are good — IF they take you on. I'm in the middle of working with AmeriCU out of Syracuse on a BRRRR here in Buffalo but they are moving sloooowwww. Nice product, though.
@Timothy Smith Thanks for the response!
I was under the impression that once a rehab loan converted to a regular mortgage, there would still be the typical 6 months before you could refinance that mortgage. So basically the same rules as any conventional mortgage, but again, I have only a basic understanding of any of this so I could be missing something.
I will check out Upstate Bank.
@Kaja Baum , I'm happy to report to you that that's not how ASB construction loan works!! The reconstruction loan through ASB is a "one stop shop" so to speak. They appraise your property based on ARV, taking into consideration your scope of work. So, you know your ARV from the beginning. The downside is your only way to add value is aggressive appreciation. After your final construction draw, the loan converts to a permanent mortgage with no additional closing costs. No seasoning period as it doesn't apply.
I've done several of these with ASB and would be happy to talk offline if you would like. Just shoot me a message.
@Kaja Baum try credit unions. Although I don’t know any in Buffalo, I have found that they typically don’t have a seasoning period requirement in Albany.
@Kaja Baum yeah Tim nailed it. Also commercial loans do not have a seasoning period. That Avenue can also be explored.
I'm doing a refi with Upstate Bank right now, they've been great so far and have great rate with no seasoning period. But it is a commercial loan with a rate adjustment at the five year mark and has prepay penalties. Bank of Holland may also not require seasoning but I believe they are only 20 year term on refi.
The seasoning period is for cash out refis. Call every bank and see if they will accept 3 months seasoning
I recently did cash-out refinance with Amerisave without seasoning at 3.125%, 30 year, 2 points. It took almost 3 months from the time I applied to the time I received the cash, so it was not a speedy process.
@Kaja Baum I work with multiple commercial lenders that can help with financing with less than 6 months seasoning, will be glad to help. Lets connect some more, and Go Bills, Hey-ayyyyyyy-ayyyyyyyy-ayy!