Refinance scenario
Refinance out of hard money before the maturity date sets the terms for you
Hard money gets a property bought and renovated. It is not built to be held. The exit, a long-term DSCR refinance, goes smoothest when it is planned months before maturity, not weeks. We help landlords map that exit and shop the takeout loan across wholesale lenders.
Who this fits
- Investors finishing a renovation financed with a hard money or bridge loan
- Landlords facing a balloon or maturity date in the coming months
- Owners paying extension fees who want a permanent loan instead
- BRRRR-style investors ready to refinance a stabilized rental
The three questions that decide the exit
First: will the new loan be large enough to pay off the hard money balance, including any accrued interest and exit fees? Second: does the rent cover the new long-term payment by enough to satisfy the lender? Third: does your ownership history meet the lender’s seasoning rule for using the new appraised value?
If all three line up, the refinance is mostly paperwork. If one does not, there is still time to adjust, but only if you start early.
What to have ready
- Hard money note, current statement and a payoff estimate with per-diem interest
- Settlement statement from the purchase
- Renovation scope, invoices and photos
- Signed lease, or a realistic market rent estimate if not yet leased
- Insurance declarations reflecting the property as a rental
If maturity is close
Ask your hard money lender about extension terms now, even if you hope not to use them. A documented extension option gives the refinance room to close properly instead of rushing. Then send us the file; we will tell you plainly whether the timeline is realistic.
We are a mortgage broker. We arrange and shop financing from wholesale lenders; we do not lend our own money. Business-purpose loans on non-owner-occupied investment property only.
How it works
Four steps, no surprises
Mark the maturity
We work backward from your maturity or extension date to set a realistic timeline.
Get rent-ready
Lenders want a finished, leasable property. We list what the appraiser needs to see.
Size the takeout
We test the new loan against value, seasoning rules and DSCR to confirm it pays off the bridge.
Close the exit
Payoff letter, appraisal, title and underwriting, coordinated to land before the deadline.
Questions
Common questions
How soon after buying can I refinance out of hard money?
It depends on each wholesale lender’s seasoning rules. Some will refinance based on the new appraised value after a shorter ownership period, others require longer or cap the loan at your cost basis until then.
Does the property need to be leased first?
Not always. Some programs accept market rent from the appraisal on a vacant, rent-ready property, though terms may differ. A signed lease usually strengthens the file.
What if the new loan will not fully pay off the bridge?
You would need to bring cash to closing or restructure. We identify any shortfall early so you can plan for it rather than discover it at the closing table.
Next step
Bring us the loan you have. We will show you the loans you could have.
Share your current balance, rent and maturity date. A Loan Daddy loan specialist will compare what wholesale lenders can offer for a business-purpose refinance and walk you through the trade-offs, without pressure.