Looking for banks without Seasoning requirements

5 Replies

Has anyone worked with a bank that can do a conventional 30 year cash out refi without having to wait the 6 month seasoning period. Preferably would like at least 75% LTV. Currently in a deal all cash already got it rehabbed and rented. Just looking to pull the money back out to reuse in the next deal. Would also love to hear of any other strategies being used in a like manner.

Any help or advice would be appreciated.

Thanks in advance. 

I had a terrible time using residential banks giving me an appraised value of just what I paid for the property despite all the improvements. I got a commercial loan. They do the value based on cap rate or gross rent multiplier and they don’t have the 6 month requirement. You’re looking for banks that don’t sell off to Fannie/Freddie and hold the note. You can get a commercial or portfolio loan, the rate will be higher and the am shorter but a lot easier to deal with when you’ve added value (in my experience).

@Aamir H.

The bank isn't the one with the seasoning requirement, Fannie Mae/Freddie Mac is.  They are the ones who will eventually buy your loan after it is originated.  The banks have to abide by the rules set for by Fannie/Freddie, or else they will have to keep the loan on their books (it will then become a portfolio loan).  So by the very structure of how conventional loans work, no you cannot get around the seasoning issues to get ALL of the money back out.

You can look into DFE (Delayed Financing Exception) to pull out the equity up to the PURCHASE PRICE immediately (you will not be able to touch the rehab cash you put into it).  Once the 6 months are up, you can then cash out refi again to pull the remaining equity back out, but then you are paying loan costs for 2 loans in 1 year, which may not be worth the effort.

Just a side note, if the property is single family, you can get cash out up to 75%.  2 - 4 units you will be capped at 70% for the cash out.

If the houses are in Philadelphia , New Jersey then u can use First Trust bank. They dont need a seasoning period.

For Pittsburgh oh my Gawd even delayed financing I think i have better luck pulling a teeth out of an elephant than getting a loan from a bank.

Cheers

Amit

I think there are some in DFW, let me see if I can find the company. 

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