A question about refi of private/hard money loan

[Adam Britt]

Good evening BP!

There are a few individuals I know who may be willing to fully finance a property acquisition with cash. Once I buy the property, what are my options to refinance with a conventional loan (at lower percentages I hope)? At what point can you refinance? I will "technically" own the property 100% myself as far as the bank knows, right?

[Kevin Romines]

If there is no lien against the property at the time you want to refinance, immediately after acquisition, then you can do a Delayed financing, refinance. This loan will allow you to get as much as the full purchase price plus refinance closing cost rolled into the loan based on the new appraised value and 75% LTV as non-owner occupied or 80% LTV as owner occupied.

If there is a lien against the property from the purchase, then you can either do an immediate rate and term refinance which will only refinance the pay off of the lien or you can wait 6 months and do a cash out refinance up to 75% LTV.