Congratulations! You’ve successfully renovated a property and are ready to put it on the market.
However, the property doesn’t seem to be selling right away…Or maybe you’ve decided that it would make a better long term rental rather than a flip. Regardless, you need to find a long term solution and get out of your hard money loan before it matures and you continue to pay a higher interest rate.
So how do you refinance out of a hard money loan?
Traditional banks oftentimes will not allow real estate investors to refinance into one of their 30-year loans. These banks do not want to take on the risk of an investment property, even if it is leased, cash flowing, and you’ve built a healthy amount of equity into the property.
In the event that a traditional bank WILL fund your rental property, they require a laundry list of documents to get pre-approved…
Bank Statements…
Photo ID…
Tax Returns dating back many years…
Paystubs from your first job in high school…
Once they’ve collected all of these documents they then inform you that it will take 60-90 days to close on the loan. This puts you past the maturity date and forces you to pay a higher interest for another two to three months!
You need to identify a real estate investment lender that will finance 30 year fixed rate rental property loans… Such as Corridor Funding.
Corridor Funding can refinance your hard money into a 30 year fixed rate loan in a matter of 2-3 weeks vs. 2-3 months and interest rates as low as 5.5%. We do not require any income verification for underwriting these loans and work with investors to get the best interest rate possible. We understand that when you’re in a hard money loan time is of the essence.
If you would like to refinance hard money loan into a longer-term note, Corridor Funding is happy to help. Just click the “Get Pre-Qualified” button at the top of this page and we’ll contact you ASAP.