What is the HUD as it pertains to refinancing and stating things

[Brock Norton]

What is the HUD as it pertains to refinancing and stating things about your real estate?

Additionally 

• When you brrrr and have a contractor doing the work it is the refinance company who pays the contractor for their work per the HUD? What if it takes 2-3 months to finish all of the work? Is the contractor just supposed to have funds to tide them over till they get paid?

[Jaysen Medhurst]

@Brock Norton, I think you may be confusing a few things here.

Federal Housing Authority (FHA) loans are backed by Housing and Urban Development (HUD) to help new buyers get into a property with a very low down payment. 

An FHA 203(k) loan rolls renovation costs into an FHA loan. The contractor must be FHA qualified and will be paid in installments (called draws) when certain levels of completion are achieved. Typically, 3 draws: when the job starts, mid-way through, upon final completion.

Refinancing, as a part of BRRRR, happens after the renovation is complete and the property has "stabilized," i.e. all units rented. Typically you have to wait at least 6 months after buying a property before you can refinance. This is called "seasoning."

Hope this helps.