Quick question for the masses. Anyone know if this 6-month "seasoning" process for a cash out refi on a 1-unit investment property is a fannie/freddie mandate, and if not, can anyone refer me to a lender that works a bit quicker.
Every bank I've spoken with won't let me cash out refi on a new appraised value until 6 months from closing. The one's being flexible on time are telling me i can cash out refi on the original purchase price (which does no good since the home was a BRRRR -- original purchase was 70k, and ARV is 125k)
Thanks in advance! If i have to wait the 6 i will, but if i can find a lender (property is in NY state) that wont slow me down, then even better!
Your only chance will be to find a portfolio lender who holds their loans in house. All conventional loans will require 6 months seasoning.
Look up "delayed financing". If you can buy at enough of a discount this may be an option for you to get your money back without having to wait 6 months
Hi @Pete Fiannaca ,
Yes, it's a Fannie/Freddie rule. The only exception is the Delayed Financing Exception, which it appears you have already discovered.
In theory you could seek out a hard money 2nd mortgage. Then, consolidate at the six month mark.
I get away with this rule by creating a private loan (my cash to someone else, who then loan me back), I apply for refi after a week I close on the purchase and got my cash out 45 days after the first close at new appraised value. Maybe try it for the next one.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing