What's the BRRRR loan called (one bank agrees to initial + refi)

[Caleb Christopher]

I started searching for all-in-one loan, but that's a HELOC strategy and not what I'm talking about.

BRRRR: Is there a name for the type of loan where you get the rehab loan, then refinance upon appraisal? Or is this just a custom arrangement every time with lenders?
(And do you know lenders who do it?)

I know I've heard of some lenders agreeing to do the refinance quickly and accept reduced fees for the double transaction. This simplifies the process and number of people I have to find/involve, and dodges hard money.

[Chris Mason]

There is no special program or Fannie Mae guideline or any of that. It's a word made up by the folks on this website. 

It's just two mortgages. A purchase mortgage. And then, six+ months later(1), a cash out refinance. 

Or it's just one mortgage. A cash purchase. And then, a day or a month later, a cash out refinance. 

(1) Quick note on this. Lots of folks starting out balk at that, "omg why do I have to wait six months, I plan to finish in 2 months!" Let's talk about that timeline... the reality is it's going to fall into one of two camps. Either it's just minor cosmetic stuff and it does finish in 2 months, but the value isn't there in terms of the appraisal for the cash out refi. Or, it's major stuff, and that "2 months" becomes 8-24 months because we live in the real world, but hey at least the value is there on the cash out refi. In either case, that six month wait from Fannie isn't what will actually hold you up, in the real world.