Cash out Refinance

Buying & Selling Real Estate
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Cash out Refinance

Neil P.
Edison, NJ · Member since 2014 · 80 posts · 19 votes

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?

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Upen PatelPro Member
Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
10y

@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.

[email protected]571-200-6180
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  • Rah-sheen Blalock
    Brooklyn, NY · Member since 2013 · 41 posts · 9 votes
    12y

     can you give me some info if your company does lend in nj?

    0Reply
  • Steve Wilcox
    Investor · Cranford, NJ · Member since 2012 · 303 posts · 153 votes
    12y

    Most banks will only do cash out based on the purchase price not the appraised value for the first 12 months. Some will lend on appraised value if you have done something to improve the value of the property- I.E major renovations. 

    All local portfolio lenders have their own lending guidelines so I suggest you get on the phone or bring a short prospectus to the lenders showing them what you need and why it is a win win. 

    0Reply
  • Andrew S.
    Investor · Raleigh, NC · Member since 2013 · 1k+ posts · 708 votes
    12y

    @Neil Check out Delayed Financing Exemption.  You pay cash, make improvements, then finance (must be WITHIN 6 months of closing) based on 70% of new appraisal up to 100% of original purchase price plus original closing cost.

    @Neil P. undefined

    0Reply
  • Colby J.
    Investor · SC · Member since 2014 · 11 posts · 5 votes
    12y
    Originally posted by @Curt Davis:

    If this home you are wanting to cash out refi on is the 4th home or less you can do 75% refi.

    I work with a bank that has no seasoning but not sure if they lend in your state of NJ.  IF the home is in another state let me know and I can try and find out for you.

    @Curt Davis - I have an investment property in SC and I am looking to do a  cash out refi for 75% of appraisal price also, without having to wait 12 months for seasoning.  Do you know if the bank you work with will lend in SC or one that will?  Thanks!

    0Reply
  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    12y

    I will contact my lender tomorrow and find out if they Linden your state. If they do I will get you that contact information.

    Curt Davis - KAIZEN Realty538 Reviews
    WebsiteView Page
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  • Account Closed
    Investor · Virginia Beach, VA · Member since 2015 · 34 posts · 2 votes
    10y

    Curt, I am in the same boat as these others. I am in VA and having trouble getting around the seasoning rule. Please let me know if your bank could help me out with this.

    Glenn

    0Reply
  • Joshua Beall
    Realtor / Listener / Coach · Charles Town, WV · Member since 2015 · 46 posts · 23 votes
    10y

    Hi Neil,

    If you've had one or more banks tell you know, don't give up: keep contacting different banks, and see what they'll do for you. I contacted about ten different banks, and eventually found a local bank that would do a 5/5 ARM, 30 year amortization, cash-out refi with no seasoning requirement, and they'd go 85% LTV.

    One NJ approved lender you might want to check out is Ridge Lending Group. I heard the founder, Caeli Ridg, interviewed on Matt Theriault's podcast last year, and while I don't remember the exact details, I'm pretty sure at the time that they were offering a cash-out refi without a seasoning requirement. You should check into them and see if they will work for you. I haven't used them because they have $60k minimum loan amount, and on some of my properties I wanted a smaller loan than that.

    But, the bottom line is: keep looking, and don't give up if you can't find the right bank right away. :-)

      -Josh

    1Reply
  • Chris MillerPro Member
    Flipper/Rehabber · Hampton, VA · Member since 2013 · 18 posts · 8 votes
    10y

    Hello Joshua Beall could you please share with us the local lender you use for Virginia that did the 85% LTV cashout refi. Thanks

    0Reply
  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    10y

    @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.

    [email protected]571-200-6180
    2Reply
  • Philip McCollum
    Yorktown, VA · Member since 2016 · 5 posts · 6 votes
    10y
    Originally posted by @Account Closed:

    Curt, I am in the same boat as these others. I am in VA and having trouble getting around the seasoning rule. Please let me know if your bank could help me out with this.

    Glenn

     In the Virginia Beach, there are lenders that will give you 80% of appraised value in a cash out (Movement Mortgage), but you still have to wait the six months.

    0Reply
  • Prince Dhillon
    Investor · Sacramento CA · Member since 2014 · 51 posts · 12 votes
    10y

    @Philip McCollumcan you give some names of lenders, who are giving 80% of appraised value in cash out in Virginia Beach,I really appreciate that. 

    0Reply
  • Brit Foshee
    Investor · Fort Myers, FL · Member since 2012 · 462 posts · 200 votes
    10y

    @Prince Dhillon

    Check out Limaone and dwell finance. 


    Both of these lenders do what you are asking. You will pay higher interest and origination, but no seasoning requirement.

    1Reply
  • Prince Dhillon
    Investor · Sacramento CA · Member since 2014 · 51 posts · 12 votes
    10y

    Thanks a lot @Brit Foshee, I will check with them.

    0Reply
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