Investor · Cambridge, MA · Member since 2017 · 195 posts · 106 votes
Hey Everyone,
Has anyone ever beat the 6 month seasoning period? I need recommendations for lenders that can do a cash-out refi before the 6 month seasoning. I have reached out to 5 lenders and no luck so far
Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes
4y
It just depends on your strategy if you structure your acquisition correctly you can do a rate term refinance out and avoid the 6 months all together even with conventional financing. If you dont plan that upfront then you'll have to find a local or portfolio lender or non QM/DSCR loan that doesnt adhere to the 6 months seasoning to do so but by then you might be subject to higher rates and points to accomplish the same mission you had if the strategy going in was well structured.
Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes
4y
It just depends on your strategy if you structure your acquisition correctly you can do a rate term refinance out and avoid the 6 months all together even with conventional financing. If you dont plan that upfront then you'll have to find a local or portfolio lender or non QM/DSCR loan that doesnt adhere to the 6 months seasoning to do so but by then you might be subject to higher rates and points to accomplish the same mission you had if the strategy going in was well structured.
Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
4y
You can get as low as 3-4 months seasoning requirement on a Non-QM loan. In the recent past, you would have gotten about 2% difference between a Fannie Mae / Freddie Mac rate versus a Non-QM rate, but lately, it's much closer to the same rates. I assume you are wanting to do the cash out as soon as you can to then move on to your next project. If you have a nest egg that allows you to do multiple properties at once, you wouldn't have this need.
If you have a primary with good equity in it, take out a HELOC to have for down payments and closing costs. Once you do the cash out refinances, then pay back the HELOC. This will keep the ball moving forward enough that you shouldn't have to wait out the 6 month seasoning before you move to your next deal?
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
4y
@Allen McGlashing most of the "seasoning" restrictions that you face can be solved with just structuring your deal properly. There still might be a chance to get cash out here as well.....would you mind telling us what the ARV of the property is, if it's a single family home or 2-4 unit, and what you purchased it for? That might help us guide you a little better. Thanks!