New York Lender with no Refinancing period?

Question

Hey everyone! Running into a snag with financing we’d love some help with.

My fiancé and I are Brrrring in Buffalo NY and  realizing the 6 month seasoning period most banks have is far too long to have all our cash tied up.

Does anyone know of a lender (besides Alden State Bank) in state or nationally that can do rehab loans without the 6 month seasoning for refinance? Is there another way besides expensive hard money?

Thanks so much!

Timothy Smith · Answer

@Kaja Baum, I'm happy to report to you that that's not how ASB construction loan works!! The reconstruction loan through ASB is a "one stop shop" so to speak. They appraise your property based on ARV, taking into consideration your scope of work. So, you know your ARV from the beginning. The downside is your only way to add value is aggressive appreciation. After your final construction draw, the loan converts to a permanent mortgage with no additional closing costs. No seasoning period as it doesn't apply.

I've done several of these with ASB and would be happy to talk offline if you would like. Just shoot me a message.

I've done several of these with ASB and would be happy to talk offline if you would like. Just shoot me a message.

Marty Johnston · Answer

@Kaja Baum I think some others have nailed it here - it depends on what you're looking for: Speed? Best Rate? Low Doc (no tax returns or income verification)? Depending on what's most importrant to you, this will also adjust your options. There are lenders with 30-day seasoning periods who can use the new value of a property right away. Some others are 3-mo. Rates for some of these 'Bank Alternate' lenders are between low 5% - high 6% range depending on your credit and the loan amount/leverage requested. Credit Unions are also a great choice - check out your local ones. They by nature (typically) don't have seasoning requirements, and also no Pre Payment Penalties! (which is uncommon for Commercial loans btw). If you want speed (<30 days closing), the bank alternate lenders are your best option. If rate is your goal, and you are okay closing in 45-60-90 days, then a credit union is probably your best bet.

All of the above I'm referring to are commercial loans by the way - some will allow you to still close in your personal name, OR an LLC - depends on the institution. PLEASE ignore everyone who says commercial will only lend to an LLC. That's being stated from someone who isn't familiar with the secondary market lenders out there... Same goes to terms - 30-yr fixed is possible through commercial lenders. So while rates may be higher with the Bank Alternate lenders vs the "banks" at a 20-25% term at 4%, your monthly payment isn't that much higher with a 5.5% over 30-yr fixed (no balloon either).

Shoot me a DM if you wanna chat more about this. Happy to talk options!

David Robinson · Answer

@Kaja Baum I work with multiple commercial lenders that can help with financing with less than 6 months seasoning, will be glad to help.  Lets connect some more, and Go Bills, Hey-ayyyyyyy-ayyyyyyyy-ayy!

Erik B. · Answer

The seasoning period is for cash out refis. Call every bank and see if they will accept 3 months seasoning

Luz F. · Answer

I recently did cash-out refinance with Amerisave without seasoning at 3.125%, 30 year, 2 points.  It took almost 3 months from the time I applied to the time I received the cash, so it was not a speedy process.

Tim Delaney · Answer

I'm doing a refi with Upstate Bank right now, they've been great so far and have great rate with no seasoning period. But it is a commercial loan with a rate adjustment at the five year mark and has prepay penalties. Bank of Holland may also not require seasoning but I believe they are only 20 year term on refi.

Matthew Irish-Jones · Answer

@Kaja Baum yeah Tim nailed it.  Also commercial loans do not have a seasoning period.  That Avenue can also be explored.

Kaja Baum · Answer

@Marty Johnston

I need a love button for this post. Thank you! That is hugely helpful when you frame it in terms of strategy. I’ve been approaching it with a focus on refinancing as quickly as possible and with minimal cash down, but I see how a blended strategy depending on the situation could be even more effective.

I may take you up on your offer. Would love to learn more from you!

Kaja Baum · Answer

@Timothy Hero

Pre rehab, around $80k. Credit is excellent.

Kaja Baum · Answer

@Luz F.

Wow, good to know. Here I figured it would be about the same as closing on a regular loan. Thank you for that insight!

New York Lender with no Refinancing period?

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