How fast can I refinance a single family house after buying it?

10 Replies

I hope this is the right place to ask im a member in a ton of forums but this one is def a little-overwhleming with the 2 million sub categories here :) lol

Anyway, Im going to buy a single family house / duplex in below market value

I was wondering how fast I can re-finance and use the equity in the house to buy another one? 

thanks in advance

Zion

Most banks want a cool off period of 6-12 months before you can refi - but every bank is different. Local and community banks or credit unions will probably work with you more than the bigger guys on this, especially if you have a business plan.

I think another per-requisite is having more than 20%~ equity in the home to create a loan out of.

6 months is the requirement for a conventional Fannie/Freddie cash-out refinance.

Otherwise you can use a commercial/portfolio lender and cash-out immediately.

Originally posted by @Kerry Baird :

If you buy all-cash at the onset, you can more easily refinance under six months.

Delayed-financing won't allow him to tap into the equity like he's looking to do.

@Zion Bar

Like @Brian Garrett suggests, a commercial lender is a great option.  However, your refinance will most likely be based on the purchase price + renovations until you've hit the 12 month seasoning mark.  (Anyone who knows of a commercial lender with different criteria please let us know.) At that point, you could get the loan based off of the Appraised Value which is likely much higher than Purchase + Reno.  Best of luck and keep us posted if you find something different!

All the best,

Alex Bekeza, Loan Officer

Originally posted by @Alex Bekeza :

@Zion Bar

Like @Brian Garrett suggests, a commercial lender is a great option.  However, your refinance will most likely be based on the purchase price + renovations until you've hit the 12 month seasoning mark.  (Anyone who knows of a commercial lender with different criteria please let us know.) At that point, you could get the loan based off of the Appraised Value which is likely much higher than Purchase + Reno.  Best of luck and keep us posted if you find something different!

All the best,

Alex Bekeza, Loan Officer

There are tons of lenders who don't require any seasoning and can refinance based on ARV immediately.

Call all the small local banks and credit unions in your area and there's always national lenders as well.

@Brian Garrett Can you name one lender you've spoken to who will do a commercial cash out refinance on a property with no seasoning requirement and fund an asset based loan based on "After repair value" immediately after purchase?  Even if its a small local lender in your area.  

I'd love to reach out to them to learn more.  Thanks

@Alex Bekeza I'd have to dig around to find specific names but there are plenty of commercial/portfolio lenders even just here on BP alone who can cash-out refinance based on ARV without any seasoning period.

Thanks everyone for the comments, appreciate it! 

Also, if any of u need help with anything that has to do with lead gen online, shoot me a message id love to help and give something back.

Cheers!