Investor · Austin, TX · Member since 2013 · 49 posts · 17 votes
I have a flip that I recently completed the rehab on and then listed for sale. I talked to my lender about a cash-out refi and they said I have to take the house off the market for 6 months before I can refi. Is this normal?
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
12y
It depends on your lender/how you financed the flip. With my banker I can refi out almost immediately if it was an all cash transaction. If I used a HML or another type of "loan" then it is 6 months and they'll go off of an appraisal.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
Why refi if it's for sale. Costs would seem not to make sense. Banks aren't interested in making 20 year loans, that are going to get paid off in a few months either.
Real Estate Lender · Atlanta, GA · Member since 2014 · 48 posts · 9 votes
12y
There are many bank and non traditional bank lenders who will refi a short term purchase and rehab loan with a permanent vehicle. You may have a hard time finding one who will lend you more than you owe until a period of seasoning has passed.
Investor · Austin, TX · Member since 2013 · 49 posts · 17 votes
11y
Thanks Ryan.
Wayne, the reason I'm looking to refi is that the hard money loan expires in 6 months (3 now). Just looking ahead for options in case it hasn't sold by then. I don't to be running around looking for options at the last minute.
I understand that banks are not interested in making 20 year loans on a loan that will be paid off quickly, but it seems odd that if I had refi'ed and THEN listed it for sale there would not have been a problem.
Jay, can I get a HE loan if it is listed for sale?