Financing for a BR RR

6 Replies

I want to buy a house cash, do some renovations, live in it, and refi to pull most (if not all) of my money out. I’ll probably rent it out later but that doesn’t fit into the equation right now. A BR RR if you will.

The house is in good enough shape to close conventional. I’m only wanting to close with cash to make my offer stronger and bc I don’t want any financing bs to hold up closing. In any “normal” market, I’d just put 0-3% down owner-occupied, pay for the reno, and call it a day.

I’ll be speaking to banks/credit unions as well but what do you see as my options to refinance (or finance) after reno to pull my money out as soon as possible? Any seasoning requirements? Is delayed financing an option here?

@AJ H. Thanks for the response and link. They also linked to another thread that I had forgotten I saved a while back that’s helpful as well. I’ll need to read thru it again. Gonna link it in case anyone else needs it

https://www.biggerpockets.com/forums/48/topics/460294-how-to-cash-out-1-4-unit-property

@Taylor D. Jenkins thanks for posting and thanks for referencing that link.  Greatly appreciated.  I would HIGHLY encourage you to get prequalified ahead of time when doing this strategy.  I wrote that post with an investment property in mind.  Just get prequalified with a primary home loan so that we know that your lender can do what is required.  Feel free to ask anything else if you need.  Thanks again!

@Andrew Postell No worries. That thread's a gem. Would getting prequalified prior to this process for an owner-occupied SFH allow one to refinance (or delay finance) at 95-97% LTV or would it be limited to 75-80% LTV since the delayed financing strategy is being used? Generally speaking

@Taylor D. Jenkins delayed financing will be limited to the normal cash out LTV that is on a primary home. 75% is the maximum for an investment property with Fannie/Freddie. So whatever your state allows is the limit for the primary transaction. In Texas it is 80% on a single family home.