Refinance a HML (New Jersey)

[Sean Brown]

I have a mortgage 385K on a property I am living in. I have 100K and am seeking a 200K construction loan to renovate, add another floor with significant improvements. 

I am finding it difficult to get a Construction to Permanent Loan from a conventional lender. While this process is going on, I was told by an investor friend to go for a HML that funds construction (and pays the original mortgage ) if I can show a pre-approval for a 600K refinance.

Getting an approval for a refinance is not a problem considering the income, dti ratios and the final appraised value would be about 900K.

I would like to put the scenario out to experienced people and see if there is anything that I should be wary of.  

[Odie Ayaga]

If you are living in it you won't be able to get a hard money loan for it. Hard money lenders only deal in non-owner occupied properties.