BiggerPockets

Joshua, I am a hard money mortgage broker and also am associated with a residential mortgage broker. Cash out on a conventional loan is a waiting period of 6 - 12 months. You're only choices are a local bank (because they lend their own money) or use hard money for the time it takes to hold the properties long enough to do a conventional refinance.

Problem is you can't start a cash out refi until there is 6 months seasoning - most underwriters will not accept it before - even if the whole process takes 6 months.

There are lenders that will do 6 months seasoning - so you submit on day 1 of month 7 then go through the refi process - so your looking at 8-12 months.

You can still do a rate and term refi with 0-30 days seasoning - so you can get a HML in place then do a rate and term

Rate and term more will do it then not - meaning Citi / Chase / Wells / Provident all do the rate and term with little to no seasoning (0-30 days) - a better question is what lender doesn't do this?

As for cash out with 6 months a buddy just closed with Provident Funding.

There are less lenders that do the 6 months cash out then there are of the 0-30 days rate and term that is for sure.

Having said that I use mortgage bankers VS brokers and/or local small private banks for my personal deals just full disclosure.

Does the seasoning period apply for an owner-occupied home or only investment properties?

Based on the responses here it appears that many respondents are talking about non-commercial loans... or loans that would be underwritten using FANNIE or FREDDIE guidelines or trying to use the loan programs of many large banks.

In my experience this is an extremely difficult way to grow your business... as Joshua has suggested.

I have found that many small, local (under $100,000,000.00) in assets) banks will do this kind of lending. In fact, if you have taken the time to create the relationship with these banks in advance of your need to refi, you can then have the confidence to take deals down knowing presicely what the back-end loan will look like.

These banks, called portfolio lenders(because they keep these loans in their own portfolio) almost always are savings and loans or community banks.

Bank of American, Wells Fargo, Sun Trust do not understand what investors are trying to do and therefore don't know what to do with us.

Small, local banks do.

I am not sure if I can offer this, but I have created a short report on how to create solid working relationships with your local banks. If you would like that report just let me know.

Hope this is helpful?

Pete

My company (Gateway Funding) has no seasoning for NOO rate/term and 6 months for cash out.

For flippers paying off hard money on a recently closed deal- the underwriter just asks for a field review after the appraisal is done to ensure value.

I have great rates and in house underwriters. I can broker for those of you that have 5-10 mortgaged properties. Quick close times as long as we get all of the docs together on the front end.

Phone number is in my signature.

Thanks!

FHA owner-occupied there is no seasoning on a cash out single family - BUT, if owned less than 12 months they use the lesser of 85% of the appraised value or 85% of the sales price.

Conventional owner-occupied is 6 months before you can use the appraised value for cash out - 6 months is note date to application date.

Rates are in the low 5%s - depending on the loan amount, LTV, and of course market fluctuations.