Refinancing HMLs in Louisiana

[Candace Fontenot]

Good afternoon,

I am planning to purchase a home at auction with a HML and I would like to refinance that loan into a mortgage as soon as possible after closing on the property. Does anyone know of any banks that will refinance a HML within 31 days of purchasing a property in New Orleans, La?

[Robert Leonard]

 Hello @Candace Fontenot, and welcome to BP.  If I can make a recommendation that will help you get more out of your engagement here on BP, you should fill out your profile.  I know a lot of Fontenot's already, yas!

What will you do if it takes 90 days to get your refinance? Will the numbers still work? What if it takes you 6 months? Will the deal support paying HML rates for that long if things don't go as well as planned? There are usually a lot more unknowns when buying at auctions that equal more risk. That risk is spread when you have a portfolio of properties or you have deep enough pockets to absorb the occasional cement filled plumbing lines and missing copper that you might find in an auction property. If you are looking to use an HML and you don't have those means of spreading your risk, this is a very risky choice of investment to start with.

Have you received an approval from an HML to do this? Usually, they expect to lend based on an appraised value and there's not enough time to do one from the time you become the winning bidder in most auction scenarios.