Cash-out Refinancing in Texas

[Kevin Hassold]

Is there a way around the 6 month minimum seasoning period to refinance an investment property? I was talking to a lender about BRRRing a property using a line of credit to purchase and rehab the property which I thought would get around this since it would be like purchasing the property with cash but they are still telling me that I wouldn’t be able to cash-out refi until 6 months. They did say it is possible to refinance before the 6 month period is up but it could only be for just the amount used to purchase the property through the line of credit and not the rehab amount. Just want to make sure I am understanding the Texas rules correctly.

[Marian Smith]

They do if they want to sell the loans to freddie or fanny. If they want to keep the loan in house they can follow their own guidelines.