REFINANCING BEFORE SEASONING - LOOKING FOR LENDER

8 Replies

Hello BP Community,

I have an, all cash, deal on a home I will be buying through an estate sale near Pittsburgh and I really need to do a cash out refinance to  get some of that capital back ASAP.  I know that most banks want you to have the loan seasoned 6-12 months before refinancing but I just found another deal in Texas I need to get that cash for. 

According to public records, comps on the same street sold for roughly three times more than what I am paying.  So, minus a little capital to get it rent ready, I was hoping an appraisal would place the value near those comps so that I could do the cash out.  

A hurdle that is in the way, is my wife works a commission based job and she has been on medical leave without pay for the last 7 months and just return to work this week. This puts my personal DTI around 48% when not counting her income. Anyone happen to know any banks that would work with me on a cash out refi and any that would consider my wife's base income even though she has been on medical leave for so long? Would it be smarter to try to get a HELOC and are there any potential banks that would consider it?

As always, "Thank You" for your time

@Craig Clark

If you are a cash buyer, then you can absolutely do an immediate cash out refi without waiting - even into a conforming loan.

Most typical lenders should be able to handle this, presuming the loan meets Fannie Mae's 'delayed financing exception' requirements. Look them up; Fannie's guidelines are publicly available.

I've used this method in TX several times.

Craig, your situation is pretty simple for either a conventional lender or a private lender to deal with based on what you describe. Are you including the rental income in your DTI calculation?

Paul

Originally posted by @Paul Higbie :

Craig, your situation is pretty simple for either a conventional lender or a private lender to deal with based on what you describe. Are you including the rental income in your DTI calculation?

Paul

Hi Paul, I didn't consider using the rental income in my DTI because the property is still going through closing. I was under the impression that most lenders would not consider the income until it has been stable for at least one year.

Originally posted by @Craig Clark :
Originally posted by @Paul Higbie:

Craig, your situation is pretty simple for either a conventional lender or a private lender to deal with based on what you describe. Are you including the rental income in your DTI calculation?

Paul

Hi Paul, I didn't consider using the rental income in my DTI because the property is still going through closing. I was under the impression that most lenders would not consider the income until it has been stable for at least one year.

Craig, the lender that I work with will count 75% of the rental income once a lease is signed. That may be an option assuming you have a lease signed with a tenant already. 

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