Can you do a refi on the subject property after the subject to deal?
The whole purpose of obtaining a propert “subject to” is to assume the existing loan payments without having to qualify for a loan. If, later on, you want to refi you can – you’ll just have to pay off the loan you assumed.
Da Wiz
Normally, how long would I have to wait to refi a property.
Cliff
You will need to look at the terms of the existing loan to see if there are any stipulations regarding paying off the loan early (i.e., prepayment penalty) or whatever. Other than that, you can refi just about anytime. But as the previous poster said, the whole idea behind Sub2 is because you don’t need to bring in new financing.
Not wanting to confuse newbies or anything, but buying a property sub2 and doing a refinance may be a great way to get a no problem cashout loan on a deal.
A sub2 closing is quick and doesn’t have alot of closing costs upfront.
Once you have the deed, if you have a source for a no seasoning cashout refinance, then you can do a refinance and pull some $$$ out.
Example: $100K ARV prop., seller needs to sell now and wants the $70K owed. Do a quick sub2 closing, get the deed and refinance at 80% LTV and pull out a cool $10K (minus costs).
Raj
You’d have to look at the conditions of the loan. There may be a PPP present or a 6 months seasoning issue – review/setup the loan to your favor. Most lenders do require 6 months seasoning but the no-seasoning lenders are out there… most no-seasoning lenders will easily do a RT [rate&term].