Looking to refinance a traditional 30yr mortgage before 12 months

St. Louis, Missouri
Private Lending & Conventional Mortgage Advice
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Looking to refinance a traditional 30yr mortgage before 12 months

Kolin GoffPro Member
St. Louis, MO · Member since 2024 · 19 posts · 20 votes

Hi all - I have a traditional 30yr Fannie/Freddie loan with 25% down on a duplex that is currently rented out and cashflowing well. I have forced an additional 30% of appreciation through some redesign and repairs. Are there any loan products I’d be able to cash-out refinance into before 12 months of seasoning? I seem to get mixed messages in my research. Thank you!  

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Alex BekezaBusiness Member
Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
1y

@Kolin Goff I invest in Saint Louis too (South City) and I just sent you a PM with some info on cashing out prior to 12 months and I think you'll be surprised that pricing will stand up toe to toe with conventional without needing 12 months AND offer higher LTV on a duplex investment than conventional.

[email protected]818-606-8823
Investor Property Loan5306 Reviews
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  • Andrew Zamboroski
    Lender · Member since 2021 · 495 posts · 130 votes
    1y
    Quote from @Kolin Goff:

    Hi all - I have a traditional 30yr Fannie/Freddie loan with 25% down on a duplex that is currently rented out and cashflowing well. I have forced an additional 30% of appreciation through some redesign and repairs. Are there any loan products I’d be able to cash-out refinance into before 12 months of seasoning? I seem to get mixed messages in my research. Thank you!  


    DSCR programs start at no seasoning when rehab is done, otherwise, many offer 90-day seasoning. Happy to help if you want to connect!

    1Reply
  • Patrick Roberts
    Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    1y

    Most DSCR loans will have between 0-6 months of seasoning requirements for cashout refi's on both the property and the underlying note, with 3+ being the most common. The type of underlying loan (purchase vs cashout refi) will also affect seasoning requirements for the loan - several dscr lenders will require 6-12 months seasoning on notes that were originated as a cashout refi, even if the property meets ownership seasoning requirements.

    For fannie/freddie, youre looking at 12 months seasoning for a cashout refi.  

    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    1y

    @Kolin Goff conventional loans require 12 months of seasoning. Non conforming loans allow as little as 3 months. Feel free to reach out with any questions and I can give you a few scenarios on what your options will be. 

    [email protected]619-456-8311
    Helm Mortgage Corp.5127 Reviews
    WebsiteView Page
    0Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    1y
    Quote from @Kolin Goff:

    Hi all - I have a traditional 30yr Fannie/Freddie loan with 25% down on a duplex that is currently rented out and cashflowing well. I have forced an additional 30% of appreciation through some redesign and repairs. Are there any loan products I’d be able to cash-out refinance into before 12 months of seasoning? I seem to get mixed messages in my research. Thank you!  


    We have a 2 step program that we fund out of balance sheet that allows you to pull out cash before 12 months, and then refi into a conventional loan. You get the best of both worlds in that way: No seasoning to pull cash out AND the conventional rate/costs and no pre-payment penalty which are all better then DSCR loans. We do not lend in Missouri however if the property in is MO.

    Hurst Real Estate, INC4.991 Reviews
    WebsiteView Page
    1Reply
    • Kolin GoffPro Member
      OP
      St. Louis, MO · Member since 2024 · 19 posts · 20 votes
      1y
      Quote from @Jay Hurst:
      Quote from @Kolin Goff:

      Hi all - I have a traditional 30yr Fannie/Freddie loan with 25% down on a duplex that is currently rented out and cashflowing well. I have forced an additional 30% of appreciation through some redesign and repairs. Are there any loan products I’d be able to cash-out refinance into before 12 months of seasoning? I seem to get mixed messages in my research. Thank you!  


      We have a 2 step program that we fund out of balance sheet that allows you to pull out cash before 12 months, and then refi into a conventional loan. You get the best of both worlds in that way: No seasoning to pull cash out AND the conventional rate/costs and no pre-payment penalty which are all better then DSCR loans. We do not lend in Missouri however if the property in is MO.


       Hey Jay - this is super intersting. Rental is in MO unfortunately here but are you aware of anyone else who has similar products serving MO? 

      0Reply
    • Jay HurstBusiness Member
      Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
      1y
      Quote from @Kolin Goff:
      Quote from @Jay Hurst:
      Quote from @Kolin Goff:

      Hi all - I have a traditional 30yr Fannie/Freddie loan with 25% down on a duplex that is currently rented out and cashflowing well. I have forced an additional 30% of appreciation through some redesign and repairs. Are there any loan products I’d be able to cash-out refinance into before 12 months of seasoning? I seem to get mixed messages in my research. Thank you!  


      We have a 2 step program that we fund out of balance sheet that allows you to pull out cash before 12 months, and then refi into a conventional loan. You get the best of both worlds in that way: No seasoning to pull cash out AND the conventional rate/costs and no pre-payment penalty which are all better then DSCR loans. We do not lend in Missouri however if the property in is MO.


       Hey Jay - this is super intersting. Rental is in MO unfortunately here but are you aware of anyone else who has similar products serving MO? 


       I do not. We fund them using our own money so can make our own rules so it would not be a broker product. 

      Hurst Real Estate, INC4.991 Reviews
      WebsiteView Page
      0Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    With a DSCR loan you can do a cash-out refinance off the appraised value with as little as three months seasoning!

    0Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    @Kolin Goff I invest in Saint Louis too (South City) and I just sent you a PM with some info on cashing out prior to 12 months and I think you'll be surprised that pricing will stand up toe to toe with conventional without needing 12 months AND offer higher LTV on a duplex investment than conventional.

    [email protected]818-606-8823
    Investor Property Loan5306 Reviews
    WebsiteView Page
    2Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Kolin Goff

    the short answer is yes but I don't think an increase of 30% is enough to make it worth it - because (A) DSCR loans typically have fairly high closing costs, which will just get deducted from your proceeds, and (b) your rate will probably go up. with that said - sure, call around and see what's on offer.

    i recommend The One Brokerage, David Greene's company.  not affiliated in any way, have just worked with them in the past.  they're a broker so they're going to charge their own fee on top of whatever the lender charges.  but IMO they add a lot of value.

    good luck

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y
    Quote from @Kolin Goff:

    Hi all - I have a traditional 30yr Fannie/Freddie loan with 25% down on a duplex that is currently rented out and cashflowing well. I have forced an additional 30% of appreciation through some redesign and repairs. Are there any loan products I’d be able to cash-out refinance into before 12 months of seasoning? I seem to get mixed messages in my research. Thank you!  


     Hi Kolin, 

    Yes, assuming the property debt covers at a 1.00 Ratio there are many DSCR based lenders that can do this with 90 day seasoning and a few with no seasoning requirement at all. Rates are comparable to a conventional loan, except that a DSCR loan will carry a pre-payment penalty. You can price it out without a PPP, however the rate and/or fees will be higher.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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    0Reply
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