Are you Refinancing hard Money into a long term loan – Points to consider

Lenders that are refinancing into long term loans may limit to:

Hard Money Liens (refinance transactions)

The refinance of a hard money lien is permitted with the following restrictions,

1. Cash out is not permitted

2. Closing costs may not be rolled in to the new loan balance

3. Max LTV is 70%

4. Borrower must have been on title at least 6 months

5. Property may not have been listed for sale in the previous 6 months

6. May not negatively amortize

7. Borrower must make monthly payments

8. Must be an arms-length transaction

9. LTV is based on the lesser of the purchase price or appraised value if hard money lien is aged less than 12 months

These are typically fannie mae guidelines, thats why its good to work with brokers and local banks.

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