Cash Out Refi: Not Waiting 6 months?

3 Replies

Hey Everyone,

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!

-pete

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.

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