All Forum Posts by: Jason Halliburton

 @Jason Halliburton   There is not a one size fit all solution.   That is why it is important to work with a lender who understands your goals, and understands the rehab portion AND the long term.  A good % of hard money lenders do not understand the long term options and a % of conventional focused loan officers do not understand the hard money portion so getting out with the best possible solution is tough because few people understand both worlds.  Find a LO that does and lay out the plan before ever starting a transaction.  

And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back. So, what we do on we make a HML is once we get the take out appraisal to establish the value we will modify our existing HML to raise the loan amount to the max loan to value for the take out product, then proceed with the refi. This makes the take loan a rate/term refi NOT a cash out so we can use the new value. The result is you get the funds you wanted without having to wait the now 12 months, and still refi into a conventional loan.

Or, if you did not do a HML loan with us we do a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term. So, again, it just takes a good LO, and a plan.
 
 

You should consider alternative financing options such as a , a bridge loan, or a private money loan. These types of loans typically have higher interest rates and fees, but they can offer more flexible terms and faster approval times. You can also consider partnering with a seasoned investor who has the necessary funds and meets the requirements to acquire the property.

 I assume the property you are referring to take the cash out on is an investment property, and not your primary residence, correct? 

Edit: Freddie Mac's change in guidelines is effective March 7, 2023 https://guide.freddiemac.com/a... so that means the refi would have to close and fund before then.

@Jason Halliburton  On short term deals the upfront cost and lack or pre-payment penalty are much more important then the interest rate. 

If it's not owner occupied that will be your only option. There's alot of good NonQM loans out there. You can look at it as a short term loan until you qualify for Fannie/Freddie products.