Cash out Refi, what’s minimum time frame to be allowed to do so?

[Aaron Huckels]

Hello, I currently have my own home with a mortgage and am looking to get into rentals. Would you recommend doing a cash out refi on your personal home or not? And if so is there a minimum time frame for having to own the property before being allowed to carry out the cash out refi with the lender?

Thanks,

Aaron

[Eric Kump]

Hey Aaron, I just finished a cash out refinance on my own home. I took out the maximum amount of cash and am looking for a property to buy that I can airbnb. This was the quickest way for me to have funds for a 15% down payment, as well as funds for furnishing the home and making any necessary improvements. The good thing about doing this on your primary home is that you will have a good interest rate (as long as your credit score is in line). If you have extra money left over you can always put it back into your original loan and recast it. This would take your term back to the original year amount, (in my case 30) and drop your payment. 

Most lenders require atleast 6 months of being on the deed in order for you to do a cash out refinance. Some states require 12 months from what I have seen. What state are you in?