Cash out refinance solutions

[Brandon Halley]

I am currently attempting to refinancing one of my flips that I have decided to make my primary residence. I originally bought it with private money for 80 and borrowed another 80 for the remodel for a total of 160 + interest. It just appraised at 275.  

Before the purchase I thought that refinancing may be on the horizon so I went into a bank and told them my situation in detail. Including the possibility that I may change title from my business to my name and live in it. They said that if my numbers were as expected there should be no prob. 6 months later. So 6 months later I went in again to say lets move forward and they said I needed to season for an additional 6 months after I changed title. Ouch! I thought we went over this clearly.

So, I start shopping around again. After explaining my situation, the first question to every potential lender was 'Do i need the 6 month seasoning?' I found a highly recommended local guy who said it was no problem. We locked in a rate, got an appraisal, and we are currently about a week from closing. He calls me yesterday and says, turns out we need to wait 6 months after you change title. WTF! But his solution is that we can still refi for the money I owe- just no cash out. Then, is recommending a HELOC for the rest. I dont like this option because the rate I locked is higher because it was supposed to be a cash-out, and I was planning on taking 80% LTV which he said added another 1/8. My plan was to use the cash for a down payment on a rental. So a HELOC I don't believe is not ideal. I am young and my strategy is something like.. borrow as much for as cheap and as long as you can.

So do I blow this guy off and keep shopping? Wait 6 months while paying higher interest and try again? Do the refi for what I owe no cash out and HELOC for the rest? Are there any lenders who actually know what they are talking about? Sick of hearing one thing and getting another.

[Kris Wong]

The main risk you're taking in waiting the 6 months is paying a higher rate, as rates are slowly creeping up. Have you talked to any portfolio lenders in town? They don't have the same requirements as lenders who are just going to resell your loan.