How long do you have to wait to refinance?

Question

If you purchase a property for under market value with instant equity (let’s say a 100,000 mortgage on a property that will appraise for 175,000), how long do you have to wait to refinance in PA? Would your “season” period shorten?

Jason Wray · Answer

TJ -   Rule of thumb is 6 months.  How long have you owned?  FHA and Conventional

Todd Deluca · Answer

From my local lender “sub 6 months it’s 75% of purchase price and After 6 months it’s 75% of appraised value”.  Pretty standard from what I’ve heard.

Jon Kelly · Answer

The standard is 6 months, but you can find lenders that do not require seasoning. Call as many local lenders as possible. Where in PA? Most of my properties are near the Lehigh Valley and I can share lenders if you need.

TJ C. · Answer

@Jason Wray I don’t own it yet, but am in the process of figuring it out. I will be buying below market value but don’t have all the money for the down payment/closing. So thinking about using hard money for some of it (which I will be able to cover at 1% through cash flow, it’s already tenant occupied) and I will get that back after I refi. Just need to know how long that would take since obviously the sooner would be better to avoid that interest as much as possible. It is conventional.

Chris Mason · Answer

Yup, 6 months.

How long do you have to wait to refinance?

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