No cash out refinance seasoning

[Account Closed]

Are there lenders that will do a no cash out refinance on an investment property with no seasoning requirement? Don't know if it matters but the initial loan would be from a private lender.

[Sean Pincus]

@Sarah Shockley

The reason you may be getting conflicting information at the bank is because they might be making an assumption that you want to base the cash out on the VALUE of the property. The cash out that you are allowed to do within the 6 months is for 100% of the COSTS of the house (not including renovation costs). They refer to this mortgage as a Delayed Mortgage or Delayed Financing

In order to qualify for Delayed Financing

• The cash used for the original purchase must be documented to the bank (no gifts for the original purchase-- if it is a gift the situation then becomes a lot more difficult)
• The new loan size may not exceed the property's original purchase price + closing costs (re-read my originally example)
• A title search must show that no liens exist on the home
• Proof that the home was actually sold (HUD-1 document from closing will do this)

Let me know if you have any other questions.