AITD and refinance

[Chris Isaacson]

I have a contract on a house that is a major fixer. I am buying the other rehabber(seller) out as it is a bigger project than he anticipated. I am going to purchase for $180k and do a wrap with the existing seller and his HML, construction bid is just over $150k and I have private money for this. I intended to refi when construction was complete and possibly make it my primary residence, the ARV would be $500k or higher if the market stays strong.

I called my lender to discuss the end game and she said that she cannot refi on AITD and that they are illegal. I called my other lender and he said that he could not refi on it either but did not specify the legality. I have never tried to refi a wrap so I don't know if this is true but from what I have read other investors have not had a problem refinancing with this situation.

*I intend to cash out refi as much of my investment as possible, I also have VA which if I could refi after 12 months I was told it may be easier to cash out refi