Cash Out Refinancing in PA

[Igor Messano]

Hi everyone,

Has anyone done any cash out refi's recently in PA or more specifically in Philadelphia? The few local lenders I've worked with in the past (not for refi's) are all requiring 12 month or rent seasoning with a 70% LTV. Has anyone been able to get it at 6 months of ownership?

I am looking to close on properties with either HM or personal credit lines and refi as soon as possible. My current deal might work with "delayed financing" under FNMA since there wont be much if any repairs required.

Any thoughts?

[Stephanie P.]

@Igor Messano

All guarantors like VA, Fannie Mae, FHA etc... put out guidelines. Those guidelines are just that, guides for lenders to follow so when it comes time for the guarantors to buy the loan, they have some idea of what they have.

One guideline is to not give cash out on a loan for a property that was purchased less than 6 months ago.  Some lenders are concerned that the 6 month rule is too lenient and may impact their neighborhood scores, so they stretch it to 1 year.  The 6 months above the base guideline is an overlay.  Other guidelines where you'll find lenders commonly install overlays is score requirements, number of properties financed and residential square footage percentage on mixed use properties.

Stepanie