[{"data":1,"prerenderedAt":50},["ShallowReactive",2],{"faq-refinancing":3},{"id":4,"title":5,"authorSlug":6,"body":7,"description":14,"extension":15,"heading":16,"intro":17,"items":18,"loanType":43,"meta":44,"navigation":45,"path":46,"seo":47,"stem":48,"__hash__":49},"faqs\u002Ffaqs\u002Frefinancing.md","Refinancing Out of Hard Money FAQ | DSCR Takeout & Exit Strategies","tim-mushen",{"type":8,"value":9,"toc":10},"minimark",[],{"title":11,"searchDepth":12,"depth":12,"links":13},"",2,[],"Learn when and how to refinance out of a hard money loan. Covers DSCR takeout loans, timelines, costs, and exit strategies for real estate investors.","md","What Investors Ask About Refinancing Out of Hard Money","Most hard money loans are designed to be short-term, which means having a clear refinance plan is critical before you ever close on the initial loan. Below are the questions we hear most from borrowers planning their exit from a bridge or fix and flip loan.",[19,22,25,28,31,34,37,40],{"question":20,"answer":21},"When should I start planning to refinance out of my hard money loan?","Start planning your exit before you close on the hard money loan. Ideally, you should know whether you intend to sell or refinance and have a general timeline mapped out from day one. Most borrowers begin the refinance process 60 to 90 days before their hard money loan matures to allow time for appraisal, underwriting, and closing.",{"question":23,"answer":24},"How does a DSCR takeout loan work after a hard money loan?","A DSCR takeout loan replaces your short-term hard money debt with a long-term mortgage that qualifies based on the property's rental income. Once the property is stabilized and generating rent, the DSCR lender evaluates whether the rental income covers the new mortgage payment. No personal income verification is required. Veristone Capital offers DSCR takeout loans with 30-year terms and rates starting at 5.3 percent.",{"question":26,"answer":27},"What do lenders look for when refinancing out of a hard money loan?","DSCR and conventional lenders typically want to see a stabilized property with a current lease or documented market rent, a clean appraisal supporting the new loan amount, and a borrower with a minimum credit score (usually 620 or higher). The property should be in good condition with any planned renovations fully completed.",{"question":29,"answer":30},"How long does it take to refinance out of hard money?","A DSCR refinance typically takes 15 to 25 business days from application to closing. Conventional refinances can take 30 to 45 days or longer. Build this timeline into your project plan so you are not scrambling at the end of your hard money term.",{"question":32,"answer":33},"What are the typical costs of refinancing out of a hard money loan?","Expect to pay origination fees (usually 1 to 2 points on a DSCR loan), appraisal fees, title and escrow charges, and any prepayment penalties on the existing hard money note. Total closing costs typically range from 2 to 4 percent of the new loan amount. Factor these into your project budget from the start.",{"question":35,"answer":36},"Can I refinance before my hard money loan matures?","Yes. There is no requirement to wait until maturity. Many investors refinance as soon as the property is stabilized and rented, even if months remain on the hard money term. Check your current loan documents for any prepayment penalty or minimum hold period, as these vary by lender.",{"question":38,"answer":39},"What if my property is not stabilized yet when the hard money loan is due?","If renovations are not complete or the property is not yet rented, you may need to request a loan extension from your hard money lender or explore a new short-term bridge loan to buy additional time. DSCR lenders will not fund a takeout on a property that is not generating rental income or is still under construction.",{"question":41,"answer":42},"Can I do a cash-out refinance when exiting a hard money loan?","Yes. If the property has appreciated or you have added value through renovations, a cash-out refinance lets you pull equity while paying off the hard money balance. Veristone Capital offers cash-out DSCR loans up to 75 percent LTV. This is a common strategy for investors who want to recycle capital into the next deal.","refinancing",{},true,"\u002Ffaqs\u002Frefinancing",{"title":5,"description":14},"faqs\u002Frefinancing","qlY6joASAio1Ojmx8Wq2OsUQQnJITz54If8iOJwF_FU",1792596708960]