Refinance options for recent purchase

6 Replies

Original Thread:

I recently closed on a property (will be my primary residence) using half cash half private money. Purchased the house for 30k under assessed value and some renovations underway as well, so already have substantial equity in the property. I've contacted a few lenders in my area (Syracuse, NY), but they all require 6 month seasoning period. Are there alternatives to waiting 6 months to refinance? Thanks!

There shouldn't be seasoning requirements through any Fannie Mae or Freddie Mac lender on a no-cash out refinance.  If you attempting to get back money after repaying the private lender, then many lenders have a waiting period for a cash out loan.  A heloc may be a good idea, unless you only want a 15-30 fixed rate.

Wow @Darren Eady I did not know that cash outs were treated differently than a normal refinance, I might go ask my banker about that today. We are currently waiting for a 6 month seasoning to refinance a house we bought on May 31st, we were not going to do a cash out this time... This might just be Awesome! 

@Joshua Daniels; @Tia Rubadeau 

Non cash-out refinances are called RATE and TERM refinances.  Mention this wording when you talk to the bank and you'll get a different answer about required seasoning requirements.  Some banks have their own conditions above and beyond Fannie Mae and Freddie Mac guidelines called an bank overlay.  You may want to work with a mortgage broker in your area instead of a bank, who will know different lender's overlays.  Try to get a referral to a mortgage broker so you end up working with someone that has been trusted by one of your friends or family recently.

@Tia Rubadeau  You don't need to wait for 6 months. You want to find a mortgage banker that can do delayed financing, which is available only up to 6 months. :-)

Please let me know if I can answer any questions.

Upen Patel, Mortgage Banker.

Thanks for the replies everyone, @ feature doesn't seem to be working properly. I believe I have found a small local bank who will work with me with the option of a cash out refi or rate and term refi and home equity line. Great suggestion on stating rate and term when inquiring about refi as it did change the response. Delayed financing didn't apply in this case because it was only half cash purchase, needed all cash to go this route. Anything Fannie or Freddie (most banks) required 6 month seasoning for cash out, however some banks were willing to do rate and term refi immediately. Some banks also wanted 6 month seasoning for HELOC even based off purchase price. Lots of phone calls, but I think I found the right one!