Refinancing A Sub2 Deal

If I do a subject to deal, can i refinance? Let’s say they call the loan due. Can I get a HELOC, or refinance to pay it off?

You can’t refinance it. Maybe the original owner can - if they want to - but chances are they can’t. You will probably have to get a new loan or assume the existing loan (where you will have to go through a normal loan approval process with the existing bank).

If the numbers are good, you might be able to get a private investor to replace the bank???

Hi Joe…

I think maybe the question was when could they take out the original loan with a new loan… If so, then like most anything else 6 months…Assuming its a conventional loan or anytime if its equity or private…

Not certain you would want to and certainly don’t create a deed restriction by writing into your agreement that you will buy “X” date or on resell.

Happy house hunting


If you keep the pmnts up there is a VERY VERY LOW chance the loan will be called. Having said that, it’s not your responsibility to get new financing on the property; it’s your buyer’s. Write it into your contract and be sure they understand it. Unless of course you are making the pmnts yourself then yes it’s up to you. But keep the pmnts up and you will most likely not have this problem.

Now, for anyone to get new financing, it CAN be considered a refinance if the person making the pmnts has a contract with you, ie, Land Contract, Contract for Deed, Contract of Sale (depending on what your state calls it). If they have made consecutive, on-time pmnts on the property they have a good chance of getting permanent financing on it. By having a contract on the property and they are making pmnts, it gives them equitable interest that a good mortgage broker will use to get them approved.

If you are making the pmnts yourself, usually if you have been on title (seasoning) for a certain period of time like 6 mos, (depends on the lender), this will give u an edge to get it refinanced. It makes no difference if the orig note is in someone elses name.