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if I buy a house with hard money, how long do I have to wait before I can refinance it ?

Does the hard money mortgage need to season for a certain amount of time before I can refi? And will I even qualify for refi? How good does your credit need to be to get refi?
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November 09 2010 - Weatherford
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Answers (4)

I do several of these every month. Usually on investor purchases.

FICO score doesn't matter. Although, a low FICO score has not been the reason for any that I have done. Most have over a 740 Score. The primary reason is to be able to purchase quickly. Usually, it's interest only, three year terms, with a six month prepayment penalty.

The borrower is required to put 40% down with minimal documentation. Funding can occur within 10  business days of receipt of purchase contract.

The borrower can obtain traditional financing after 6 months with no penalty. The higher interest rate for such a short period, my 2 points and the lenders 3 points, nor the cost of refinancing is a concern. The concern is being able to purchase the desired property at a distressed price.
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November 11 2010
Be careful when you buy with hard money.  Obvious the rate is going to be higher than a normal purchase, but usually you will have one year to find permanent financing.  Also, most lenders want you to own the property 6 months before they will give you permanent financing, but if you have 620 you can still get an FHA loan around 4.5% on a 30 year fixed. :)
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November 11 2010
You can refinance anytime after the deed is recorded, which usually takes 2-3 weeks after closing. The hard money has no season. 
The refi will have the same lender requirements as a mortgage as far as credit score, so if your score is below 620 it will not be possible unless you go with a small local bank that is willing to lend.  
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November 10 2010
Profile picture for the_country_hick
Why would you need to buy with hard money? The answer to that could determine the answer to your posted question.

Most are saying a 620 to 640 fico score for a mortgage. I would think a refinance is the same thing. The only problem with getting a loan at that low a score is you pay higher interest rates.
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November 09 2010
 
Related Questions
if I buy a house with hard money, how long do I have to wait before I can refinance it ?
Profile picture for Rudi Hofmann
Latest answer by Rudi Hofmann
November 11 2010 | 4 answers
  • Asked by dmhawkins123
  • In Investing
  • November 09 2010
Mortgage Rates
 
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