Hard Money Refinancing - Repair Escrow & Reserve Requirement

[Greg Shyne]

I am currently in the middle of a rehab on an investment property that I purchased using a hard money lender. I would like to refinance out of the hard money loan to a conventional loan pretty soon. My question is, if I were to withdraw repair funds from the escrow account after repairs are complete, would those funds be eligible in order to satisfy the “6-12 month cash reserve” requirements of the new conventional mortgage on an investment property?