Cash out Refinance

[Neil P.]

I plan to buy a second home all cash, however, I wanted to refinance afterwards. My credit is great and I have no problem qualifying.

1.  I want a bank with no seasoning requirements.

2.  My current bank  local bank said they will do it only after 6 months on the appraised value which i want, but i have to wait 6 months which i want to avoid.

3.  My current bank is saying they will only do 70% of the refinance after appraised value.

Basically i want to purchase the home all cash, refinance but my local bank said i have to wait 6 months and they will only give me 70%.

Are there any banks that have no waiting period after i buy the home, and give at least 75% of the appraised value?

[Upen Patel]

@Neil P.Here are your refi options:

* Cash purchase - Delayed financing within 6 months. Loan is based on purchase price.

* Cash purchase - 6 months seasoning to do cash-out refi based on new appraisal.

* Hard/Private money - Replace existing loan, rate-term refi, at any point. No need for seasoning. This works if you the purchase and rehab is rolled into the loan. Based on new appraisal.

Cash-out refi will have a 5% LTV hit.

Since you bought with cash, if you want to do a cash-out refi based on new appraisal (ARV) then you have to let is season for 6 months.

These are Fannie/Freddie guidelines.