Family Loan to Renovate New House -- Refinance?

[Brandon Cao]

Hi Everyone,

I will potentially be purchasing a $50k house that requires a decent amount of repairs maybe about $25k. After repair value would be $110k, plenty for refinance. The initial loan mortgage would be a 20% down conventional residential mortgage (therefore a $40k mortgage). If I borrow the $25k amount from parents and use some sort of paper documentation to document the transaction with an interest rate. Would I be able to refinance the 80% [or $65k whichever is less] of the property value using the after-repair value assuming 1 year has passed using a rate-and-term refinance? In other words can I refinance such that it includes the $65k mortgage and then I can pay back the loan to the parents.

Would it be possible to refinance prior to 12 months?

The reason I am considering this is because I don't want to pay the high interest rate for hard money loan.

Thanks!
Brandon