Re-Listing Property for Sale while it is being refinanced

[Darren Gillespie]

Seeking some advise here. I am in the middle of refinancing my home into a conventional loan so that I can pay my private lender. While I wait for the refinance to complete (the next 3-4 weeks) I want to put my house back on the market for Sale and/or rent. I am being told that I have to wait. Is there any truth to that? Is this a law or policy or any kind of rule that I am not aware of?

[Stephanie Medellin]

I'm assuming this is an investment property?  Lenders don't want to make a conventional loan if you plan to sell the property right away, so yes, this is a conventional guideline that the property cannot be listed for sale. If you're planning to turn around and sell as soon as you refinance, a bridge loan would be better if you absolutely have to pay off the private lender.  Listing the home for rent should be fine.  If it's an investment, a lender would want the property to be rented.