Financing your refi down payments

[Graham Glover]

Hello everybody!

This may be a silly question, but I have been thinking a lot about financing as this is a problem for me (and potentially many of you). I have no cash, not a very good debt to income ratio (student loans!), and let's just say I'm not hitting a home run with my current salary.

So, as I'm thinking outside the box, I realized that hard money lenders sometimes loan more to investors than the actual sales price (usually for rehabs). With that in mind, I was thinking, "would a hard money lender loan to someone the cost of the house + the down payment for refinance?" I'm currently working on a formula (with someone who is much more mathematic than me) for this transaction.

My only question is: Would a hard money lender do this?

It seems that if everybody is getting what they want out of the deal, why won'd they?