Refi without Seasoning?

Are there any lenders out there who will refi my property right after closing? I heard somewhere that in today's market I'll have to hold it for 6 months - is that true? Need fast funds to reinvest.

Edited: 06/26/2010 at 10:26AM

Jason Wheeler

Private Money Lender · Pleasant Hill, California

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Icon_minipost Nov 08 '09, 08:42 AM

If you are working with a traditional lender that sells to Fannie Mae and Freddie Mac (almost any commercial bank) You should have to wait at minimum 3 months.

Edited: 06/26/2010 at 10:26AM

Jon Holdman

Real Estate Investor · Denver, Colorado

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Icon_minipost Nov 08 '09, 09:51 AM

I've been led to believe that any bank that's FDIC insured is required to wait a minimum of one year before refinancing with a new appraisal. They will do it sooner based on the purchase price and rehab costs. With some searching, you should be able to find one who will do it in under six months. Don't think you'll be able to do it right away, though. If that's your plan, I'd have the loan in place before you close.

Edited: 06/26/2010 at 10:26AM

Jon Holdman, Flying Phoenix LLC

Peter Giardini

Real Estate Investor · Baltimore, Maryland

546 posts
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Icon_minipost Nov 08 '09, 12:33 PM

The only way to avoid the seasoning issue is to create a relationship with a small local bank.

For many, real estate loans are their bread and butter. Their loans are commercial loans and therefore they are not required to follow Fannie and Freddie conventional lending requirements.

Good luck!

Edited: 06/26/2010 at 10:26AM

Will Marsh

Real Estate Coach

29 posts
45 Influence

Icon_minipost Nov 12 '09, 01:01 PM

There are some 1st position HELOC programs out there that don't require any seasoning that you might want to look for.

Edited: 06/26/2010 at 10:29AM

Curt Davis

Wholesaler · Memphis, Tennessee

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Icon_minipost Nov 12 '09, 08:45 PM

Every bank we work with can do a Rate and Term 75% refinance with no seasoning. We have several banks that do this.

Edited: 06/26/2010 at 10:30AM

Curt Davis, buyMemphisnow.com
E-Mail: crtdavis@gmail.com
Telephone: 901-881-0552
Website: http://www.buymemphisnow.com
Full Service Real Estate Investing in Memphis TN

Jeffrey K.

Real Estate Investor · Milwaukee, Wisconsin

1313 posts
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Icon_minipost Nov 17 '09, 03:58 AM

The banks I work with will also do 75 on a thirty year note. With a good income sheet, I can get 100 percent of purchase price but it is only a three year arm at 6.5 percent.

Edited: 06/26/2010 at 10:33AM

Valerie Pedigo

· Panama (South of Buffalo), New York

77 posts
505 Influence
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Icon_minipost Nov 19 '09, 11:14 PM

I've completed several 75% limited cash out refinances with no seasoning. You just have to wait 6 months if you want to pull cash (but it's still capped at 75% for Fannie.)

Where is your property located?

Edited: 06/26/2010 at 10:35AM

Joy R.

Real Estate Investor · Hallandale Beach, Florida

17 posts
83 Influence
1 Award

Icon_minipost Nov 19 '09, 11:26 PM

Thank you guys for the info!

Valerie- properties are in Indianapolis...

Edited: 06/26/2010 at 10:35AM