All Forum Posts by: Jeremy England

Good for you taking action

I'm not sure about that lender telling you there will be no seasoning.  I paid cash, and paid for the reno.  Got hit with a seasoning req

The only option earlier was delayed financing which will be limited to what you paid for the property plus closing costs, OR 75% whichever one is LESS.  

Meaning if you paid 30k, then paid 4k in closing.  You can only refi for 34k until the seasoning period is over

Its not as straight forward as you think.  If you buy cash, then all you can refi for is the purchase price and the closing cost.  The cash you used to rehab comes out of your pocket and you do not get that back on the refi.  

If you purchase with a HML then the bank won't refi you out til after seasoning. Thse are with traditional 30 years mortgages

If you get a commercial 15 yr or 20 yr mtg then the rules are different and you can refi out quicker.  

Now to answer your question, you probably CAN refi out of a traditional mortgag but the question is can you afford it.  

Origination fees, points, prepaids, etc  

sounds costly

I wouldn't subscribe.  You can get better info for free.  If you are looking for accurate rents then just look at zillow and other sites for homes in the area that are listed for rent.  

I know if I had relied on rentometer alone I would be undercharging rents by like 25%

 That sounds a little shady.  If it is legal, I'm not sure how long it will be.  

 yes, but i think hml is being used as a general term.  There are numerous lenders out there that do not consider themselves hml and who do expect  principle plus interest payments

 Are you talking about a commercial loan with 20 yr terms?  I have researched this to death looking for a way to get my cash out of my current project and can't get past the seasoning req.  

The only option I see available is a commercial loan which is amortized based on 20 year term, meaning payment is higher and cashflow is impacted.  

 It wasn't my breakdown but i know what he is talking about.  He is talking about the amortization.  If a loan is amortized at 30 years, the loan payment will be lower.  Even though the term of the loan may only be 1,3 or 5 years, the payments are basing it on a 30 years payback schedule.

He is saying some hml only amortize based on shorter periods, meaning your payments are more

 I don't know how people do that because when I was looking I was being told no.  at least not without at least a 3 month seasoning

the bank i was talking to would only do up to 65pct ltv, regardless of the HUD costs without the seasoning

What sort of terms are you seeing on a commercial cash out? LTV? Amoritization? and rate?

I ran into this on my first rental, I bought with cash, then rehabbed with cash, then rented, then got hit with a seasoning requirement.  This is for a 30yr mortgage.  I spoke with a commercial lender that offered a 20 year amortization but a higher (6%) interest rate than I could get with a mortgage.  So decided to wait for the traditional seasoning req.  A 20 year amorti and 6% would exceed my monthly cash flow goal. 

I ran into this same problem with seasoning.  Did you ever refi?  I'd like to hear your experience as it went and did you everntually scale?