refinancing w/o "seasoning" period

8 Replies

Hey Everyone-

Any recommendation on doing a cash out refinance on a rental home where you do not need to own it for six months?  I bought a house that I am going to use as a rental.  I was hoping to pull some cash out of the house (loan would be under $50k), and did not want to wait 6 months to refinance.  Any suggestions or ideas?  Thanks in advance!


Hey Adam,

Newbie here, hopefully someone will chime in that has more experiance than I.

How did you purchase the property? If you purchased with cash you may be able use delayed financing. From my understanding it would be a percentage of the purchase price and NOT the appraised value. 

Another option would be to call around to portfolio lenders, I've read that they will sometimes refinance without a seasoning period. 

Good luck Bud!

@Robert A.

Thanks for the response!  I bought it with cash, and it needs only cosmetic work.  I was hoping to just be able to recoup some of out of pocket money.  I have talked with several lenders, and they will let me do a cash out refinance, but they want me to own it for 6 months.  Once i refinance, i will hope to repeat the process on another property.

No problemo.  It's all about finding the right lender who will work with you.  Call and call then call some more until you get what you want. I'm sure you can find someone on BP to connect with!

@adam Drummond, if you purchased it with cash you can get 50% ltv. Don’t know if $25,000 will work for you.

Originally posted by @Doran Summers :

@adam Drummond, if you purchased it with cash you can get 50% ltv. Don’t know if $25,000 will work for you.

35-40k is what i was hoping to get.  i depends on the numbers, and what the payments are monthly.    Thanks for the response.


What’s the current value? What’s your credit score?

@Adam Drummond

I agree with @Robert A.

Here is an excerpt from another BP member regarding delayed financing that I hope will help you:

If you buy a property with cash (or with a HELOC) you can receive a cash out loan on Day 1.

There is not a 6 month waiting period with receiving a cash out loan if you purchased a home with cash or with a HELOC

BUT you will be limited to the amount of….

Your purchase price + closing costs (costs when you purchased the home)


75% of the “After Repair Value”…


These rules are important to understand so here are two examples:

Example 1: If you purchased a home with $50k of cash, and put $30k of renovations into the loan, and the home was worth $100k. 75% is $75k and $50k is your purchase price. So you could only receive $50k in your first 6 months ofownership since the LOWER amount is your purchase price. After 6 months you could receive the full 75% of the ARV.

Example 2: If you purchased a home with $80k of cash, put $5k into the home, and the home was worth $100k. 75% would be $75k and your purchase price is $80k…so the lower amount is $75k.

When buying a home with cash you can absolutely get cash back right away but you will be limited to the lower of those two amounts.

@Adam Drummond , so, in summary: Find a Lender who firstly understands the "Delayed Financing Exception" rules (you might be surprised how many don't), and equally importantly, one who does lend out mortgages of less than $50k (you might be surprised how few of them do that, as well!) Good luck! Please let us know how you get on...

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