Hard money to New Construction

[Jason Carter]

Hello,

My question - can I refi a hard money loan into a new construction loan if my conventional lending doesn't come through.  tear down purchase price 295k 105 down.

I have a contract on a home. I am using conventional financing but I do not have a financing contingency in the purchase contract (everyone else is paying over asking with cash). I have a 5 day option period and It doesn't look like I can get the appraisal done for a week.

My lender isn't worried about the appraisal being off but she may not be able to give a loan on the property if it is inhabitable. 

I plan to refi into a new construction loan and build two units on one lot. I plan on living in one and renting/selling the other. 

I would love to hear from @J Scott and @Jon Klaus

Thanks in advance!

[J Scott]

For a construction loan you'll likely be required to put 35% down (or have 35% equity after 6 months) -- you may find that paying cash for the property (if you have that ability) is the best way to go, since you'll need a reasonable amount of equity anyway...

But, worst case, you shouldn't have any issue refinancing from HML to a construction loan assuming you season the purchase (likely 6 months) and can qualify otherwise.