Refi a Sub-2 to offer seller financing

[Antwan Smith]

Is it possible to refi a sub-2 property and if so does putting it back on the market with seller finance a good ideal. The sub-2 is about to adjust to 9.25% from 6.25%, I've just purchased last night, the home has approx 160k of equity. Is there a seasoning period to refi a home to get ARV or will I only get actual sells amount. I would try to fix and flip but there is a lot of comp homes in area right now but none seem to be offering any creative financing. I figure offering a owner financing would give me an advantage. I would also like to pull some cash out of the refi, mainly the amount I have invested in the purchase. Any suggestion will be greatly appreciated.

[Eric Foster]

Originally posted by "antwansmith":

...Is it possible to refi a sub-2 property....
...The sub-2 is about to adjust to 9.25% from 6.25%...
...Is there a seasoning period to refi a home to get ARV...
...I figure offering a owner financing would give me an advantage...

No! On a sub-2 transaction, you can never refi. You are stuck with the adjusting mortgage. Just kidding you can refi... but, there will be either 6 or 12 months seasoning, especially if you are getting cash. They may still be a no seasoning lender out there... but the rates are high last I looked.

Why offer financing on a property with so much equity... Sell for cash!

Also, call the lender... they may not adjust the rate is you ask.

[Antwan Smith]

I haven't thought about asking for a rate adjustment. That wouldn't throw up a red flag to the bank and force a due on sales clause? If I sell for cash is it best to sell on my own or use a realtor and should I offer at a discount to get cash in this market.

[Shannon Wood]

I have one lender that does not require seasoning of appraisal and one that requires atleast six months. Giv me a call. What state is the property located?

[Antwan Smith]

It is in MD, paid $230 comps at 305k loan balance at 197k

[Eric Foster]

What did you end up doing here?