A straight answer
How soon can I refinance out of a hard money loan?
The direct answer
It depends on the refinance type. Under Fannie Mae's rules a cash-out refinance needs six months on title, and paying off the hard money loan with no cash back is a different transaction; a rental program sets its own seasoning. I'm Zach von der Linden (NMLS 1652805), a mortgage broker with West Capital Lending, based in San Clemente.
I arrange loans with lenders and put the financing together, and I place short-term, asset-based loans on real estate through lending partners, so I see both ends of this. The exit depends on four things: what you want the new loan to do, how long you have owned the property, how the purchase was financed, and whether you will rent it, sell it or live in it. Text or call me with the purchase date, the payoff, the maturity date and the plan, and I will tell you which route is open now. I work with homeowners in California, Utah, Oregon and Arizona.
Zach von der Linden, mortgage broker and Branch Manager, West Capital Lending · NMLS 1652805
Wholesale pricing · California, Utah, Oregon and Arizona
5.0 across 66 reviews on Experience.com (read on 2026-09-24) · Text reaches Zach directly · Last updated 2026-10-17
Hard money loan to replace? Text me the purchase date, the payoff, the maturity date, whether the work is finished, and whether you will rent, sell or live there.
No credit pull happens from a text or a call. Texts and calls go to Zach's cell.
What happens after you text me?
Texts go straight to my cell, and I answer them myself when I'm free. I'll ask for the few details that actually matter, tell you whether the structure looks worth pursuing, and explain the next step. If I don't think the loan fits, I'll tell you that too.
A text or phone conversation does not pull your credit.
Which refinance am I doing?
The CFPB defines a refinance as taking out a new loan to pay off and replace your old loan (CFPB, mortgages key terms), and Fannie Mae splits that into two transactions with different clocks. A limited cash-out refinance obtains a new first mortgage "to" "pay off an existing first mortgage (including an existing HELOC in first-lien position)" with little or no cash back; its ownership rule is that "At least one borrower on the new loan must be an owner (on title) of the subject property at the time of the initial application," and a full-text search of the topic found no age requirement on the first mortgage being paid off (Fannie Mae Selling Guide B2-1.3-02). A hard money loan recorded as a first lien is an existing first mortgage, so paying it off, including "additional amounts required to pay off the loan, such as prepayment penalties," fits that transaction.
A cash-out refinance, which takes equity out for any purpose or pays off a subordinate lien that was not used to buy the property, has two clocks: "At least one borrower must have been on title to the subject property for at least six months prior to the disbursement date of the new loan," and "If an existing first mortgage is being paid off through the transaction, it must be at least 12 months old at the time of refinance, as measured by the note date of the existing loan to the note date of the new loan" (B2-1.3-03). So the honest answer for a Fannie Mae cash-out exit from a hard money first lien is that the hard money note has to be twelve months old, while a plain payoff does not carry that wait. Both transactions require that a property listed for sale be taken off the market by the disbursement date, and both apply only to loans sold to Fannie Mae; other programs write their own rules.
Does the delayed financing exception help me?
Only if you bought with no mortgage against the property. Fannie Mae's delayed financing exception lets a borrower who "purchased the subject property within the past six months" take a cash-out refinance when "The original purchase transaction is documented by a settlement statement, which confirms that no mortgage financing was used to obtain the subject property," the title report shows no existing liens, and the funds are documented. The purchase money may have come from "an unsecured loan or a loan secured by an asset other than the subject property (such as a HELOC secured by another property)," in which case the cash-out proceeds must pay that loan off or down, and the new loan "can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points" (B2-1.3-03).
A hard money loan secured by the property you bought is mortgage financing, and no sentence in the topic permits it under the exception. A hard money loan secured by a different property, or an unsecured private loan, is the case the exception describes, and then the refinance must pay it off. Bring the settlement statement from the purchase and the loan documents; which case you are in is decided by those papers, not by what the loan was called.
Will the lender use the value after my renovation?
On a Fannie Mae refinance, the loan-to-value calculation uses "the current appraised value" (B2-1.2-01), so finished, permitted work is reflected in the appraisal. The delayed financing exception is the one place the guide caps the loan at your documented investment regardless of value. How much of that value a program will lend against is a figure I do not print; it depends on the program, the occupancy and the loan purpose. Other programs, including rental programs, choose their own value basis and their own treatment of work done without permits, and I confirm that with the lender before you order anything.
If the work is not finished, the property is valued as it stands, and a lender may not accept an unfinished house at all. The fixer-upper answer covers renovation loans that fund the work, and the construction and land answer covers a build that stalled.
What if I am keeping it as a rental?
Then a rental program may be the exit, qualified on the property rather than on your tax returns. The test compares the rent the property brings in with its full monthly payment, which a bank regulator describes as cash flow divided by debt service. Zach reports that West Capital Lending offers investment property loans qualified on what the property rents for, with program terms that depend on the property and your file, and the investment property page explains the test in words. A rental program sets its own seasoning, its own rent evidence (a lease, a tenant already paying, or an appraiser's market rent) and its own treatment of a property just renovated; I state none of those here because each program differs, and I read the one that would take your file before you rely on it.
A short-term rental with no operating history is its own question, and I offer DSCR loans that use a short-term rental income projection: can I get a DSCR loan for a short-term rental that has no rental history yet? If you plan to live in the house instead, the exit is an owner-occupied loan, qualified on your income like any purchase, and the hard-to-qualify hub covers the income questions.
What has to be true, and what the lender checks
- The hard money loan is current, and you have its payoff statement, maturity date and lien position. A loan in default is a different conversation, and the earlier it starts the more routes stay open.
- Title is clean: the preliminary title report shows the liens you expect and nothing else, and ownership is in the name the program requires.
- The work is finished and permitted, or the program accepts the property as it stands.
- Occupancy is settled: a rental, a second home or the home you will live in, because the program follows the use.
- Credit, reserves after closing and, on an owner-occupied loan, your income carry the new payment.
- The dates work: the title and loan-age clocks above for a cash-out, and the maturity date of the loan being replaced.
What should I have ready?
- The settlement statement from the purchase, and the hard money note and deed of trust.
- The current payoff statement and the maturity date.
- Whether title is held in your name, an LLC or a trust, and the entity documents if so.
- The renovation scope, receipts and permits, with photos of the finished work.
- The lease or rent evidence if it is rented, and what the property is expected to rent for if not.
- What you want the new loan to do: a plain payoff, cash out, or a long-term rental loan.
Send documents through the secure process I give you when we talk, not by ordinary text. A conversation does not pull your credit. An investment refinance is not issued through the online pre-approval; the request comes to me, and I reply with the next step.
Questions people ask next
How soon after buying with hard money can I refinance?
For a plain payoff of the hard money first lien with little or no cash back, Fannie Mae's limited cash-out rule asks that a borrower be on title at application and sets no age requirement on the loan being paid off. For a cash-out refinance, the borrower needs six months on title and the hard money note has to be twelve months old. A rental program sets its own clock, which I confirm with that lender.
Can I refinance before the renovation is finished?
The property is valued as it stands, and many programs will not take an unfinished house. If the work is nearly done, finishing it first usually opens more routes. If it has stalled, the construction answer covers completion financing, and a private-money extension or replacement is a separate review with no promise attached.
My hard money loan matures next month. What happens if the refinance is not ready?
The repayment deadline in your loan agreement still applies. Before that date, the options are a sale, an approved extension or a refinance, and an extension is the lender's decision, never automatic. Text me the maturity date and the payoff now; the earlier the review starts, the more routes stay open, and no closing date is promised.
Can I refinance into a rental loan without tax returns?
Zach reports that West Capital Lending offers investment property loans qualified on what the property rents for rather than on personal income documentation, with terms that depend on the property and your file. The property still documents itself: the rent, taxes, insurance and dues have to be real and verified, and credit and reserves are still reviewed.
I bought the property in my LLC. Does that reset the clock?
Not necessarily. Under Fannie Mae's cash-out rule, time the property was held by an LLC that the borrower majority owns or controls may be counted toward the six-month ownership requirement, and ownership must be transferred into the individual borrower's name to close. A rental program may lend to the entity under its own rules, which I confirm before anyone changes title.
Will asking about this affect my credit score?
No. A text or a call does not pull your credit. An application is a separate step, and I tell you before it happens.
What clients say
Zach was so easy to work with. He made a stressful situation into a very positive experience for us and did push us one way or another. He listened to what we hoped we could accomplish and made it happen.
Word for word from Experience.com. Read all reviews.
Sources and checked dates
Sources: Fannie Mae Selling Guide, B2-1.3-02, Limited Cash-Out Refinance Transactions (checked 2026-10-17) · Fannie Mae Selling Guide, B2-1.3-03, Cash-Out Refinance Transactions (checked 2026-10-17) · Fannie Mae Selling Guide, B2-1.2-01, Loan-to-Value (LTV) Ratios (checked 2026-10-17) · Consumer Financial Protection Bureau, Mortgages key terms (checked 2026-10-16) · Zach von der Linden, statement to this site (checked 2026-09-25) · Supplied by Zach, September 10, 2026 (checked 2026-09-10) · Confirmed by Zach, October 17, 2026 (via the Chief of Staff) (checked 2026-10-17) · OCC, Comptroller’s Handbook, Commercial Real Estate Lending (March 2022 edition) (checked 2026-09-27).
Show each claim on this page, what it depends on, and the date it was checked (8)
| What we say, and what it depends on | Source | Checked |
|---|---|---|
| Fannie Mae Selling Guide B2-1.3-02, Limited Cash-Out Refinance Transactions (10/08/2025), re-read 2026-10-17: "At least one borrower on the new loan must be an owner (on title) of the subject property at the time of the initial application." Exceptions include inheritance or a legal award, a property previously owned by an inter vivos revocable trust of which the borrower is the primary beneficiary, and "the borrower is currently financially obligated on the loan being paid off but not on the title." "This includes loans where the property is currently owned by a limited liability corporation (LLC) that is majority owned or controlled by the borrower(s). Ownership must be transferred into the name of the individual borrower(s)." The transaction may be used "to obtain a new first mortgage secured by the same property to" "pay off an existing first mortgage (including an existing HELOC in first-lien position);" and acceptable uses include "paying off the existing first mortgage (which may include additional amounts required to pay off the loan, such as prepayment penalties, a deferred balance resulting from completion of a prior loss mitigation solution, and late fees);" with cash back limited to a small stated amount. "If the subject property was previously listed for sale, it must have been taken off the market on or before the disbursement date of the new loan." A full-text search of the topic on 2026-10-17 for "note date", "seasoned" and "seasoning" found nothing: no sentence imposes an age requirement on the existing first mortgage being paid off, and the topic's only twelve-month conditions concern installment land contracts and co-owner buyouts. | Fannie Mae Selling Guide, B2-1.3-02, Limited Cash-Out Refinance Transactions | 2026-10-17 |
| Fannie Mae Selling Guide B2-1.3-03, Cash-Out Refinance Transactions (12/10/2025), re-read 2026-10-17: "At least one borrower must have been on title to the subject property for at least six months prior to the disbursement date of the new loan, unless one of the following exceptions apply:" inheritance or a legal award, or "The delayed financing requirements are met." When title was held by an LLC the borrower owns, "the time it was held by the LLC may be counted towards meeting the borrower's six-month ownership requirement." "If an existing first mortgage is being paid off through the transaction, it must be at least 12 months old at the time of refinance, as measured by the note date of the existing loan to the note date of the new loan. This requirement does not apply" "to any existing subordinate liens being paid off through the transaction, or" "when buying out a co-owner pursuant to a legal agreement." Delayed Financing Exception: "Borrowers who purchased the subject property within the past six months (measured from the date on which the property was purchased to the disbursement date of the new mortgage loan) are eligible for a cash-out refinance if all of the following requirements are met." "The original purchase transaction was an arms-length transaction." "The original purchase transaction is documented by a settlement statement, which confirms that no mortgage financing was used to obtain the subject property." "The preliminary title search or report must confirm that there are no existing liens on the subject property." "The sources of funds for the purchase transaction are documented (such as bank statements, personal loan documents, or a HELOC on another property)." "If the source of funds used to acquire the property was an unsecured loan or a loan secured by an asset other than the subject property (such as a HELOC secured by another property)," "the settlement statement for the refinance transaction must reflect that all cash-out proceeds be used to pay off or pay down, as applicable, the loan used to purchase the property." "The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value)." "Cash-out pricing is applicable." "Properties that were listed for sale must have been taken off the market on or before the disbursement date of the new mortgage loan." | Fannie Mae Selling Guide, B2-1.3-03, Cash-Out Refinance Transactions | 2026-10-17 |
| Fannie Mae Selling Guide B2-1.2-01, Loan-to-Value (LTV) Ratios (06/01/2022): for purchase money transactions, "Divide the original loan amount by the property value. (The property value is the lower of the sales price or the current appraised value.)" For refinance transactions, "Divide the original loan amount by the property value. (The property value is the current appraised value.)" "As defined in the LTV ratio, the original loan amount is the amount of the loan as indicated by the note." | Fannie Mae Selling Guide, B2-1.2-01, Loan-to-Value (LTV) Ratios | 2026-10-17 |
| The CFPB's mortgage key terms glossary (page last modified December 28, 2022), entry "Mortgage refinance": "Mortgage refinance is when you take out a new loan to pay off and replace your old loan. Common reasons to refinance are to lower the monthly interest rate, lower the mortgage payment, or to borrow additional money. When you refinance, you usually have to pay closing costs and fees. If you refinance and get a lower monthly payment, make sure you understand how much of the reduction is from a lower interest rate and how much is because your loan term is longer." | Consumer Financial Protection Bureau, Mortgages key terms | 2026-10-16 |
| Zach places short-term, asset-based (hard money) real estate loans through lending partners. | Zach von der Linden, statement to this site | 2026-09-25 |
| Zach reports that West Capital Lending offers investment property loans with a down payment that do not require personal income documentation, and that qualification is based on what the property rents for. | Supplied by Zach, September 10, 2026 | 2026-09-10 |
| Zach offers DSCR loans that use a short-term rental income projection to qualify a property with no operating history; West Capital Lending offers them, and he arranges them. | Confirmed by Zach, October 17, 2026 (via the Chief of Staff) | 2026-10-17 |
| The OCC’s Comptroller’s Handbook on commercial real estate lending (March 2022 edition) defines the debt-service coverage ratio as “Cash flow or NOI divided by the debt service,” and says the ratio, “calculated by dividing the NOI by the annual debt service requirements, measures the borrower’s ability to service its debt.” The property’s income is compared with the payments on its debt. | OCC, Comptroller’s Handbook, Commercial Real Estate Lending (March 2022 edition) | 2026-09-27 |
Written for and accountable to: Zach von der Linden, Mortgage broker and Branch Manager, West Capital Lending.
Last updated 2026-10-17.
Verify him: NMLS Consumer Access, ID 1652805 · 66 reviews on Experience.com.
Sources for product claims are listed on this page, with the date each was checked.