Cash out refi on new construction

[AC C.]

Hi folks, I am building as owner builder with cash (to avoid the hassles associated with such loans). When it is complete, what are my options for a permanent loan?

The lenders I have talked to treat this the same as a cash home purchase and cash out refi after, and therefore require 6 months of occupancy before doing the refi. I am on track to finish this thing in 2 months, and would prefer to not have my savings tied up if possible.

Suggestions appreciated!

[Upen Patel]

@AC C. You are correct. If you yourself are the labor, then the only way to count it in the cost of the construction, is if you bill the construction. Being that this is going to be non-arms length, it would raise all sorts of red flag.

Your situation is in a bit of grey area. Typically, to be able to do the loan on the appraised value we would need 6 month seasoning. You might be able to do it sooner, but can't be sure.

Upen Patel, Mortgage Banker

Federal NMLS# 1374243