Hard money to cash out refi. Help!

[Bryan Rodas]

If you borrow from a hard money lender. Use the funds to buy and rehab a multi family property. Rent it out and then approach a bank for a cash out refi to pay the HML, won't the loan that you have with HML show up and effect your DTI. Which could mess up your refi and kill the whole strategy?

[Tom S.]

@Will Fraser I will also leave it to the lenders to comment more, but personally I have lots of loans that don't show on my credit but you're still supposed to disclose them when applying for a conventional mortgage.  Plus the title report will show there's an existing lien anyway.  Typically lenders will also ask for bank statements, and the monthly payments to the HMl will show there too.

But to the OP's original question, it shouldn't matter as that higher priced HML debt and monthly payment are going to be eliminated. Similar to renting now and buying a house. Your existing rent doesn't really matter, it's the new payment that matters.