Lenders for a Refinance

[Charles R.]

Hey there!

I'm looking to purchase a property as a BRRRR, and was wondering if you all have any recommendations on lenders you have personally used for the refinance portion? If so, did they have a seasoning period?

Thanks!

[Jack Mawer]

Congrats on starting the BRRRR process! I would recommend looking into a DSCR loan as this coincides with what you are trying to do and some of these lenders have hard money options as well so you can stay in one shop for both the purchase/rehab and refinance.

[Jonathan Taylor]

@Charles R. Seasoning periods vary by lender but 3-6 months is found across the board. In terms of who Id recommend, I am a broker so I am biased here but if you have questions or are quoted terms, happy to answer your questions.

[Jon Puente]

Hey Charles, 

Mortgage Broker here in Charlotte, NC.  Refinance period is typically 6 months of seasoning, unless you paid cash for it.  If you pay cash for a property, you can refinance right after you fix it up! This is known as delayed financing.  

The alternative would be to use a DSCR loan, which is an investor only type of loan.

Great Question! 

[Sanat Bhandari]

@Charles R. I work with BRRRR investors fairly often and there's plenty of lenders here that do the same. What are you looking for in a lender partner?

Generally, the seasoning period is 6 months but I have a lender that can do it without any seasoning period. Keep in mind though that non-seasoned refi option has much higher rates and worse terms than a seasoned title

Another resource would be local banks/credit unions since they can also do a refinance via a portfolio loan which don't necessarily have any seasoning periods since they're not being sold in the secondary market so every bank makes its own rules. However, they do have really tight lending boxes so finding one can be a challenge

[Matthew Crivelli]

@Charles R.

If the property is originally bought with a loan you should be able to refinance after 90 days. If you buy with cash you would be looking at 6 months. Many private lenders will be able to help you acquire the property with a short term rehab loan and be able to refi you out into long term financing once the property is completed. 

[John Paul Serenas]

@Mark Munson Should be able to help you out with this.

[Mark Munson]

Hey @Charles R.

I'd encourage you to join your local REIA, as the NC REIA has well vetted lenders as vendors. I'm a member myself, and I'm a big believer in new investors joining any local REI groups they can, as that is an easy way to find resources you need. As most have stated, the typical seasoning period for a cash-out refinance is 6 months, sometimes less if the property has been rehabbed. I'd be happy to point you in the right direction, feel free to message me. Best of luck!

[Jewel B.]

FANNIE/FREDDIE seasoning period is now 12mos,with select exceptions.