Posted on: 11th May, 2010 12:15 pm
we are looking to downsize but are not forced to sell. since we're not going to take bottom dollar for our home, we see our sales potential as low. any reason we can't refinance while our house is on the market if we end up staying for the long haul? we currently have a pay option arm with a high rate.
Unfortunately, although there are no laws that would prevent you from a refinance while trying to sell your home, there are guidelines that lenders follow that will do the same thing. You might find a portfolio lender who can undertake such a transaction, but anybody who participates in the secondary markets (conventional or fha) will be restricted by the guideline.
It's not a law but it is a lender requirement that home must be "off" the market for at least 1 day before you can refinance your existing loan.
