Refinancing Question
I have a property I am about to close on, and I need to refinance. I will have a short but distinct window of opportunity to refinance and save myself a boatload of money by getting rid of a hard money loan. Question is, is it unheard of to immediately refinance a property for 60% of appraised value immediately after buying it? I am buying at less than that (tax value to be precise) and would like to pull the cash out for rehab, and mortgage payments until the business is up and running. Also this is in the millions, so I dont think the standard home or smaller multi's rules would apply . Any help on this would be greatly appreciated.
Thanks
Kyle
You can definately rate and term refinance at that ltv. Cash-out with no seasoning of the appraised value is a different story. There are a few lenders that will do this type of loan. However, if you are looking to refi (rate and term) a HM loan this should be easy given you have decent credit.
X[ Edited by KyleGatton on Date 04/01/2004 ]
I'm a little confused. Why use the hard money guy at all? A 60% ltv subsequent to a tax sale is not outrageous. If its a big deal (millions) it actually gets easier to do this way.
Mark
[addsig]
for the speed of the funding first and foremost. The original deal needed fast funding to get the lowered price, and knock out competitors. Also The seller had been hit with a series of "subject to" newbies, that couldnt close the deal. Someone actually had this property tied up for 3 months with the seller making the down payment for them. at one point, and the buyer couldnt make it happen. After that he was sceptical with any new buyers. If I can avoid Hard money I will. But if I can use the fast money to lower the price, or if it is a non conforming type of property (this is both), then Hard money is the way to go.