REO home @ 120k
ARV 160k (as given by my realtor)
Qualified for 80/20 n/o/o wanted to get a HELOC after closing.
current rents in area would allow me to cashflow about $200. after all expenses.
Mortgage broker told me I would have to wait 2 months before I could get a HELOc. is this true? he said it is because it is bank owned. Silly me I thought once I bought it then it was mine.
Lenders have started seasoning requirements for refinancing and even for resale after rehabs. Not all lenders are doing this however. You may be able to find one that will do it. Are you trying to buy for $120K and then use the appraised value of $160K to refinance. Most lenders will ask what you paid and want to see a HUD-1 as well. Check all this out with lenders if this kills your purchase plans.
However, the lenders who require no seasoning are few and far between. Most will lend only on the $120K sales price and will not use the appraised value until 6 months after the closing, with most lenders at 12 months.