Refinancing out of hard money

[Eric Langridge]

Hello all. I don't get on here as often as I should. However, I am in need of some help/advice. Who is your go to company/broker to refinance out of hard money and into a conventional mortgage in greater Austin area? Also, the quicker the better. Any help is appreciated.

[Andrew Postell]

@Eric Langridge thanks for posting.  Always great to see a fellow Texan posting on Bigger Pockets.  There are a lot of good lenders out there and a lot that aren't so good either.  Many will say "yeah, we can write investment properties"....but they have too many rules that prevent many of the strategies that we use as investors.  I've even used Finance of America as mentioned above....but that's a commercial/portfolio style of lender.  So if you are using Fannie/Freddie money then your rate will be better than with Finance of America.  Lots and lots and lots of differences on this subject so I came up with a list of questions you need to ask your lenders that you interview with.  Here's the list:

Questions for Lenders

1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
2. When do you start using “After Repair Value” on my property? (this also, 100% needs to be immediately)
3. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
4. What is my minimum down payment required? (if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
5. How many loans can I have with you?
6. Can I change title to my LLC?
7. Do you sell your mortgages?
8. What is your loan minimum?
9. Can you explain to me what your reserve requirements are?

Certainly a lot to know but hopefully this helps.  Oh, and Bigger Pockets also has a great Texas forum too.  Feel free to post there if you need more of a local response. Thanks!