Cash Out Refinancing Requirements

[Aaron Butler]

I just learned from my mortgage broker that I need a "settlement statement" in order to qualify for a cash out refinance on a property I am considering purchasing & rehabbing. In this settlement, I was told I need to document the amount of rehab money I put into the property in order to qualify for the delayed financing. In order to do this, I need to show proof on invoices, which would be hard to do because I intend to do a portion of the rehab myself instead of using a GC for everything. 

Any quick tips/experiences with this would be very helpful. Thanks!

[Neil Henderson]

@Aaron Butler 

First, when doing a BRRRR it's always wise to talk to a refinance lender before you buy the property. Be very open with them about what you plan to do.

Second, this sounds like more of a restriction of the delayed finance program which requires you to put the rehab budget on the settlement statement. I'm almost positive this will not be required if you do a traditional refinance with six months of seasoning. Not ideal, I know, but better than getting a large amount of capital stuck in the deal.