Refinance

[Luis Melendez]

hey guys I need help with the refinance of a three family I purchased back in April 2015. So I purchased a 3 family property in april 14 2015. I used a hard money lender to finance a portion of the property and they financed construction costs as well. The total i owe the lender is 103k. currently the property is fixed up and fully leased out and managed by a professional property managment company. What i would like to do is a cash out refinance. I estimate the building to be worth between 210k-220k. i was hoping to refinance for 150k and pull out around 40k after paying off lender and closing costs. I know the seasoning period is 6 months and i was looking to close by October 14th. The banks I've been in contact with tell me I have to wait 1 year to pull cash out. They said I can refinance after the 6 months but only to cover the hard money lender and closing costs. I have to wait for 1 year to pull out cash. I can't wait a year cause the hard money lender only gave me 6 months. Anyone had a similar experience and any advice would help a lot. Thanks

[Shaun Weekes]

@Luis Melendez

If you want to get cash out on new appraised value you only need to wait 6 months per Fannie and Freddie Guidelines. The lender you're dealing with has OVERLAYS which are additional guidelines on top of the banks guides.

On or after October 14th you can apply for and receive a cash out refinance as long as you don't have more than 4 mortgages under your name. Obviously your C.I.A. (Credit Income Assets) needs to be in order as well.

I would highly recommend that you use a broker or loan officer that knows how to structure investment loans and move forward from there.

Delayed Financing will apply if you have 5 or more financed homes or if you're looking for cash out with less than 6 months of seasoning.

I hope this helps and have a great day Sir.