Cash purchase refi- does "seasoning" apply?

[Vanessa Ryder]

Ok heard a lot about seasoning if you want to refi from one initial purchase loan into another after rehab, but wondering about if I buy a property (SFR or Multi) with cash, and then fix it and increase the value, if I want to refi to get my cash back out, will I be subject to "seasoning"??!!! Thx for any advice..

[Shaun Weekes]

@Vanessa Ryder @Mike Hanneman

You have 2 different options here.  Get cash based off the purchase right away ( Delayed Financing ) or wait 6 months to get cash based on the new appraised value.

Say you buy a home cash for 100K and after 2 months you want to do a cash out refinance. You can only get up to 70% of the purchase depending on what type of home it is ( SFR, 1-4 Unit )

Same scenario but now it's been 6 months and the home is worth 150K.  Now you can refinance up to 75% of the 150K.  

So to answer your questions it can be done both ways.  You just need to get with a loan officer or broker who knows what they're doing in advance.

Delayed financing by the way has a lot of additional guidelines.  You can google delayed financing through Fannie Mae and this will help you understand.  Or again use a loan officer or Broker that is with it.

I hope this helps both of you.