how long after new home purchase can you refi or take out a loan on that property?

Question

I am looking into purchasing discounted property using a hard money lender to ease the initial purchasing process. i will have instant equity in the property.  after purchase i will need to get a loan in my name from a traditional bank to pay back the hard money lender. technically because of the hard money lender i will not have a first mortgage on the property. at this time i would also like to take out the equity i have purchased.  i have been told that i may only be able to get a loan for what is owed to the hard money lender until 6 months after purchase, and need to get a HELOC for the equity. then in 6 months refi.  i don't want to pay a prepayment penalty and would like to pay off the hard money lender and get the equity and keep one payment.

Anonymous · Accepted Answer

The answer to your question is that you can refi anytime you like.

Here are some points to consider:
1. Most conventional lenders want something called "Title seasoning". In other words, they want to see that you had title of the property for at least 6 months before they will lend money to you. This is to help prevent lender fraud. Search for lenders who don't require title seasoning.

2. The hard money lender will secure the debt by deed. So when you pull title, you will see the hard money lender's lien on the property.

3. You don't need to get a loan for the hard money lender and then a HELOC. There are cash out refi's available. See if you can get a cash out refi with no title seasoning.

4. Prepayment penalties are negotiable, so if you don't want them, then don't let the broker fool you into getting them.

Good luck

kemperk · Answer

WE are in the same boat.

2 lenders on the net CLAIM to not need any SEASONING of your loan.

so, to save your bu......, get in writing that they will lend you 90% of the value of the home whenever they claim they will make the loan and get them to commit to a WHEN deadline.

I was told the same thing and I sweated and swore and went through 6 lenders till I could get my cash out
2 yrs ago.  I had to pay 4 points instead of 1.5.  I lost the ability to buy
the car I wanted because of that.

and make sure you are ready to pay for 2-3 different appraisals.

there are dozens of investigations re
phony home or other bldg evaluations
re cash out.  AGAIN, a few jerks
hurt the rest of us re cash out.

I have 1.2m in equity I am trying to get out of my prop!

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how long after new home purchase can you refi or take out a loan on that property?

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