Cash-Out Refi with No-Seasoning period required ......

Buying & Selling Real Estate
11yFollow

Cash-Out Refi with No-Seasoning period required ......

Michael Dunn
Olive Branch, MS · Member since 2013 · 452 posts · 10 votes

Just have a quick question, as I've been researching my question online, but would like to confirm it with others .....

I'm getting that you can only do a

Cash-Out Refi with No-Seasoning period

, on properties that you purchased as Investment properties , but that you can NOT do this on properties that are purchased as Owner Occupants.

If it is an O.O. , then you have to wait 6 months to 1 year to do it .... depending on your Bank/Lender ?

And lastly, when you go to do the cash out refi ..... what's the max LTV that they'll give you .... 75% ? 80% ? or even 100% ?

Thank you for the help

0Reply
23 views

2 Replies

Jump to latestLatest
  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    11y
    @Michael Dunn There is a 6 seasoning requirement for OO and Investment properties for both rate/term and cash-out refi.

    Might be easier for the community to help you if you share your situation. That way there is not issue of interpretation.


    Upen Patel, Mortgage Banker
    [email protected]571-200-6180
    0Reply
  • Doug McLeodPro Member
    Investor · Cypress, TX · Member since 2014 · 496 posts · 205 votes
    11y

    The no seasoning requirement only applies for a delayed financing exception, in which case you must close the refi within 6 months of purchase. In that case you pay cash for the house though the cash can theoretically can be borrowed from other sources as long as no lien on the subject property and you pay off those other sources with closing proceeds. You are limited to purchase price plus closing costs or the allowed LTV per guidelines, whichever is less (typically 80-75-70 depending on number of financed properties etc.). Google "Delayed Financing Exception" for details.

    This is for confirming Fannie/Freddie loans. 

    Many lenders will do rate/term refi with no seasoning if you have only short term financing in place. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free