No Season Refinance

Hello everyone,

We are purchasing a duplex that needs a lot of work and want to find out once we have completed the work is there a lender out there that could refinance us? We would be looking to recover all costs involved with the rehab. It would be a 50% LTV.

If anyone could help us please let me know.

If you purchase a property cash and use your own funds to rehab you cannot do a cash out loan to cover those expenses until you’ve been on title for 12 months. I believe 6 months if 50% ltv is all you need.

On the other hand, if you used a loan to purchase the property and just need to get back expenses then it would be 6 months for cash out.

One other possibility…if you took out a 1st position loan when purchasing that also covered expenes then the whole thing could be refinanced off. This would be a rate/term refinance and lender would use real appraisal value to determine the ltv.

Get a hard money loan in your area, they will cover the rehab costs in the loan up to 70% in some areas, then refi the property with a local bank or conventional lender.