Forgotten Your Password?

Need to Register?

Question Icon

Can i refi in under six months?

If I purchase a house for 400,000 and put 80K in renovations over the next few months. Would I be able to refi based off of the new appraised value or would the original purchase price still be used? by delia.hul44654 from Colorado Springs, Colorado. Sep 15th 2015 Reply


Joseph Afonso (jafonso)
#65 ranked lender in Arizona - 195 contributions

There are minimum time requirements and it will help to know if you are wanting to do a rate and term refinance or a cash out refinance?

Sep 15th 2015
3
0
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,446 contributions

Yes, no , and maybe... paying cash and getting a loan a few months later is OK to get the money you spent for right back. But if you want to take additional cash out... that is different. Generally you will have a waiting period of at least 6 months before you can refinance and get back any additional money other than what you used to purchase the house.

Sep 16th 2015
3
0
Dan Paladin (dpaladin)
#2 ranked lender in California - 417 contributions

The answer can vary....depending on the lender. The standard guideline is 6 months though with documenting your improvements you should be able to use the improved value.

Sep 16th 2015
2
0
William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,797 contributions

More info needed.. are you looking to do a "cash out" refi?, or are you looking to refinance the balance and lower your Loan to Value to remove MI or get a better rate? If your looking to do a cash out refinance, then there's a mandatory waiting period of 6 months, and the loan will be based on the properties current value. If your looking to do a rate and term refinance, then you can do it under 6 months, but the lender will require an appraisal, however they will use the LOWER of either the original value when you purchased it or the current appraised value... in other words, you will not get any benefit of improved value if you refinance under 6 months.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Sep 16th 2015
2
0
Derick Condron (rightstartoregon)
#33 ranked lender in Oregon - 597 contributions

Typically they will take the lesser of the appraised and sales price for the first 12 months as your value of the home.

Sep 16th 2015
1
0
Jesse Stroup (jessestroup)
#193 ranked lender in California - 589 contributions

For most investor they would like to see you in the loan for at lease six to seven months. But there is nothing stopping you from refinancing your loan when you feel it is necessary. With the renovations to the home and maybe some other factors for homes selling in your area you may get a higher value for the property and allow you to refi. Also, it may depend on the type of loan program your currently in i.e. FHA. So if you put down 3.5% and the surrounding home values may not support the strong enough value to refinance. Keep in mind, with renovations you don't get dollar for dollar of value. You may have put in 80K of updates but that may not support an 80k increase of value. I hope that helps. Jesse Stroup www.CaliforniaHomeLoanLender.comNMLS# 6229

Sep 16th 2015
1
0
Subscribe to our news feed.