They all say 12 months season for a cash out refi??
Hi Everyone! I read Andrew Postell's post about doing cash-out refi's and he says in there that if you pay for the home with cash or a HELOC that you can get a cash-out loan on day 1. I've called 4 credit unions and they all said the same thing: 12 months seasoning on an investment property even if we pay cash. They said it's a Freddie/Fannie rule.
I'm so confused!
@Alexander Felice, great episode, great information, and super entertaining! Please clarify, when you say lesser of 75%LTV or HUD, are you referring to the HUD at the point of delayed financing loan? And if so, how do you go about getting it added to the HUD?
There are plenty of private lenders out there who don't need to follow Fannie/Freddie guidelines. It's very possible to pull out 75% LTV on a property with less than 6 months seasoning. Rates are a bit higher with private lenders, but you can save a ton on not paying HML rates while you're waiting for seasoning. Not to mention the opportunity cost that comes with missing out on the next deal because your cash is tied up.
@Nikki Closser 6 months and sometimes less. I've done it numerous times with Fannie debt.
@Nikki Closser and that's 6 months with cash out. 70% LTV 2 and 3 family properties.