do you have less than 3 mortgages.? some will want seasoning before cash out refi check with other lenders... If I was making a WAG I would say his info was a little bullish in the beginning
The rules for refinance includes a seasoning period.
For Rate and Term refinance you usually need to own the property for six months.
For Cash Out refinance you would need to own the property for twelve months.
It sounds like the person you were dealing with is new to the lending industry.
Hope this helps,
Welcome to BP.
For refi cash out, you must have owned the property for 1 year for most lenders. You might be able to find a portfolio lender who could do a refi cash out for smaller duration.
Hope it helps.
6 months for new appraised value and if you're just going off the purchase price you can do this right away.
Example: If you bought the home for 100K and you want 70K out that is 70% and you're good to go. But if you bought the home for 100K and it's worth 200K with new value you can't get 70% out unless you wait six months.
Now Fannie and Freddie rules change like seasons literally so what your LO should have told you was that I can do this right now the way it is. But He/She should have said that rules change often and I have no control over this.
Most LO's only have access to banks that have OVERLAYS. This means that the bank has additional requirements; this exact situation is typically a year with most lenders.
Find an LO that has done these types of loans and you're life will be much easier in regards to refinancing Sir.
Take a look at my interview on the Joe Fairless Show; the link is on my profile.
I hope this helps and have a great day.
By the way I'm going to look this up right now to make sure it hasn't changed in the last 2 weeks. I want to give everyone on here accurate and up to date information. I just saw the post and started typing.