Seasoning before refi?

Financing, Hard Money Lenders, Private Money
1

I just refi’d my current home this month to cash out some equity. I have now come across a deal I would like to do, but I would like to avoid any problems caused by my recent refi or seasoning issues on the new property. I want to purchase this new house as my new primary residence and rent my current home (should cash flow $200/month). New house ARV is 309K, HML for 197K, I put up 20K for repairs. I can get the repairs done in less than 90 days and would like to refi (no cash out) at that point to avoid any more interest payments on the HML.

Am I going to run into issues because I just refi’d my current house? Am I going to run into issues because I’ve only owned the new property for 90days? Is a better option just to hold the property for 6 months with the HML to avoid any potential issues?Both houses are in VA if that matters. Any advice is appreciated.

Thanks,

Nate

2

Hokie,

To qualify for your new primary residence loan using rental income you will need to have at least 25% equity in your current primary proven by a recent appraisal. If you can qualify for both loans without using rental income from your current primary then you should not have any issues with seasoning or your recent refinance.