Tuscaloosa, AL · Member since 2017 · 8 posts · 1 vote
Hello everyone.
I'm looking at my first potential deal.
There's a four unit in the Huntsville, Alabama area that I am looking to buy and hold.
I am pre-qualified through a bank for the cost of the building based on the offer letter for my future job and my credit score. I can put 20% down if necessary.
Unfortunately I don't start my full time job until the end of July, and the bank needs two weeks pay stubs before closing.
So I have a few thoughts.
Would it be possible to get a hard money lender to lend me the money from closing (hopefully mid-May) until August and then refinance with the bank?
Otherwise, it doesn't seem like there is any chance to make a 120 day contract and I doubt the building is on the market for that long.
Real Estate Agent · Orlando, FL · Member since 2015 · 126 posts · 74 votes
9y
I would look at another bank. If you have an offer letter, that is usually enough for residential financing. Banks will also usually not refinance a loan that is less than 6 months old, and a hard money loan counts.
It would be cheaper and less risky to try to offer a few percent (non-refundable) upfront for an option contract on the property. You can write the contract so that all or a portion of the money you put down upfront can be applied to the purchase of the property. Good Luck!