What's the 6 months deal on refi?

Question

What's the deal to refinance within 6 months referring to? Is that if you want to do cash out on investment property and you fall in that 5-10 mortgage range? Currently have 6 mortgages and it looks to me like a line of credit would be best starting to get into fix n flips. Enables you to close fast just like cash. But, what are the options financing that property immediately?

Clinton Riskus · Answer

I just refi'd a property after 3 months. Tt can be done I believe it just depends on the lender and their guidelines. I used patelco credit union.

Gary Fischer · Answer

Right now I have one who thinks he can do a large LOC low interest based mainly on credit and net worth but I'm not holding my breath. This would be enough to just write checks for homes and rehab in the range I'm thinking about but in today's market I can't see it happening. Gosh, in today's loan market I have one at 6% I can't refi because it's about 90 ltv because of the market crash in that area. Hard to imagine getting an LOC to be able to do this

Robert Sepulveda · Answer

Yes, as long as the funds didn't put any type of lien on your property, and you can source back the funds you can use it. However, if they are borrowed funds, your cashout will likely have to go back to whoever lent them to you directly from the bank. If it's your own cash, no worries.

Gary Fischer · Answer

yeah that must be it which would qualify with apparently cash funds from any source....

Kyle J. · Answer

Sounds like you're referring to Fannie Mae's Delayed Financing Exception which waives the six month waiting (seasoning) period for a cash-out refi on a property bought with all cash.

Matt Devincenzo · Answer

Delayed Finance Exception

Gary Fischer · Answer

unless on a cash out refi I could lower interest rates on all or a serious average of all...of course you can see why I'd prefer LOC if I have good rates on my loans....use money when I need it..no closing on 6 current mortgages

Gary Fischer · Answer

An LOC is what I'd prefer...secured or unsecured. Good scores good assets.... But, my real question is about once I buy a property with LOC funds, what is available to turn around and refi? I'd heard of something based on appraisal that could include rehab and done right away but can't find it...

Gary Fischer · Answer

Are you talking about a blanket LOC?

oh cashout refi....no, I don't think so. I have good interest rates on all but 2...Like 4.5-5% on all but 2 at 6%.... One 6% is a big one though. I'd love to refi that one but LTV on that one brings down the rest...

Marcus Svehlak · Answer

Depending on the debt on your current properties you maybe able to get a blanket loan for cash out refinance on one or more of your current properties. If you go through a private lender they should be able to close a loan in less than 2 weeks. It's going to be more expensive than conventional but you can secure financing quickly and pay it off with the proceeds from your flip.

What's the 6 months deal on refi?

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