Hard money to owner occupy

[William Butler]

HARD MONEY QUESTION:

I'm looking at purchasing a townhouse in Houston. It is vacant, requires some flooring work (2nd floor has no floors laid) along with other cosmetic related needs. I plan on buying, rehabbing, and living in the home for at least 2 yrs.

I want to know, would it make sense to use hard money on the rehab, then refinance into a conventional if I am planning to owner occupy the deal? What would this process look like?

[Chris Seveney]

Quote from @William Butler:

HARD MONEY QUESTION:

I'm looking at purchasing a townhouse in Houston. It is vacant, requires some flooring work (2nd floor has no floors laid) along with other cosmetic related needs. I plan on buying, rehabbing, and living in the home for at least 2 yrs.

I want to know, would it make sense to use hard money on the rehab, then refinance into a conventional if I am planning to owner occupy the deal? What would this process look like?

Typically a HML will not lend on owner occupant property due to federal compliance issues. Sorry

Check like a 203B loan

[Shafi Noss]

Quote from @William Butler:

HARD MONEY QUESTION:

I'm looking at purchasing a townhouse in Houston. It is vacant, requires some flooring work (2nd floor has no floors laid) along with other cosmetic related needs. I plan on buying, rehabbing, and living in the home for at least 2 yrs.

I want to know, would it make sense to use hard money on the rehab, then refinance into a conventional if I am planning to owner occupy the deal? What would this process look like?

It may be ok if you move in after the HML loan is paid off.

[Katherine Blazer]

As everyone has stated, HML are normally for business purposes. If you are looking to refinance into a conventional with a cash-out refi you will need to wait 1 year. If you are looking to refinance with a rate and term or non-qm option you may be looking at around 6 month season. I would talk to lenders in your state to get specific.