You can look up some threads here on BP for more information. But basically if you are able to buy at a significant discount it may be an option for you. IF you buy all cash, you are able to recoup all of the purchase price and closing costs (Not Rehab Expenses) with no seasoning as long as the property appraises at say 75% LTV. So if you buy all cash for 75k, get an appraisal for 100k, you can get all your cash back right away without having to wait 6 months. Now if you spend a ton on repairs you will have to wait to refinance to get that money back.
Investor · Milwaukee, WI · Member since 2014 · 811 posts · 420 votes
9y
I'm not sure you are going to find those kind of terms anywhere. If you want no seasoning, i think you will need to go with a portfolio lender where terms are going to be more in the commercial realm. If you want 30 year fixed I think you are going to need to go with conventional financing and have to wait 6 months.
Also maybe look into "delayed financing " if you are looking to get your money back as quickly as possible.
Investor · Circleville, OH · Member since 2016 · 20 posts · 6 votes
9y
Hey Frank...we seem to be in a similar situation...I just called Westland Financial...they told me if the property was was purchased with cash and is free and clear they will do one month seasoning...in my situation they quoted me 4.75% with 6 months seasoning...75% ltv...closing cost under 2k...or 4.875% with $895 towards closing...I'm in Ohio so I'm not sure if they are available in your state....Rich
You can look up some threads here on BP for more information. But basically if you are able to buy at a significant discount it may be an option for you. IF you buy all cash, you are able to recoup all of the purchase price and closing costs (Not Rehab Expenses) with no seasoning as long as the property appraises at say 75% LTV. So if you buy all cash for 75k, get an appraisal for 100k, you can get all your cash back right away without having to wait 6 months. Now if you spend a ton on repairs you will have to wait to refinance to get that money back.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
9y
@Frank Profeta you are getting lots of good advice here. A conventional loan will allow a cash out refinance 1 day after purchase if you bought with cash (delayed financing rule). Now, a bank can add their own "overlay" on top. So that's why you may hear different stories on this rule. One bank may allow it after 1 month or 1 year if they want to but the actual rule is 1 day. If you did not buy with cash then you would need to wait 6 months after you own it to get a cash out loan - with a conventional loan that is. Portfolio loans have non-conventional rules so they will differ greatly dependent on the bank itself. Hope this helps.
The answer to your question is yes, but not at conventional rates or prices. In many cases the qualification is significantly easier because it's a commercial/investor loan not hampered by Dodd/Frank.
Weslend follows Fannie/Freddie guidelines; 6 months for cash out to cover anything but the purchase price.
Does 75%ARV Cashout Refi 3 month or less seasoning 30YF exist?
I usually buy cash, do my reno, but I want to hold for rent and cashout to build a solid rental portfolio.
Any help or advice would be appreciated.
Yes. Great strategy! This is how many investors get rich in the residential investment space and really build their cash on cash returns.... Even 80% LTV (the new value) exists from some sources depending on your financials and your market location, but there are lots of factors to consider. I just posted about seasoning requirements (here - link). Can you share some details about your typical buy prices, rehab costs , ARVs, rental incomes, annual taxes and insurance costs?