Question by J Storm the Phenomenon: Can I get a Hard Money loan & then Refinance Mortgage on a foreclosure property?
And How do i go about it? I took a brief real estate class and i remember the general discussion of hard money lenders and how they give you a large sum for a short time for things of this nature. I’m thinking about getting my first home but have limited funds and thought of this as an alternative.
Answer by a_khaze
Yes you can get a hard money loan and refinance later but know this, hard money loans are expensive and if you do not structure the deal right you will run into loan seasoning issues with the bank at time of refinancing. So you will have to know who you are getting the money from. Hard money lenders charge as much as 16 points (MAX by Law) and sometimes collect 6 mo interest in advance added to the total you need so if you want to buy a property on foreclosure and end up having paid only 65% of market value you will have to offer about 50-52% of asking price to end up with some equity in the property so you will be able to refi without a problem. If you need more help with this send me an email and I help you set it up the right way so you don’t get burned. (been there, done that)
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