Need new Lender recommendations and or advice. My current Lender says per Fannie/Freddie guidelines If I do a cash out refinance before 12 months they can only base it off the initial purchase price and not the new ARV. They will do the cash out refi after 6 months however It is still based on the original purchase price. This will not work for my current BRRRR strategy. I do not want to wait 12 months for each property to be able to get the 70% new ARV that I am after. Hope this makes sense. Please reply or message me if your a lender who can help with this. The property in question is in Jacksonville Florida.
I think Fannie guidelines is 6 months actually. @Chris Mason, do you know the current guidelines?
Thanks @Russell Brazil Thats what I thought as well, was surprised to hear otherwise. My lender in question is probably mistaken
I've got a local bank that will wave seasoning with signed leases. They also do 80% LTV, keep looking for other options!
Thanks @Tyler Bushey
@Chris Lord There are commercial programs out there that will do it off of new appraised value as early as 90 days. Of course, rates are higher than conventional (5% and 6% range) but they'll still go up to 75% LTV on 30 year terms. LLC vesting is also not a problem but, of course, additional commercial options become available as you get closer to 6 months and you can often get them pushed through a tad sooner with good compensating factors at portfolio lenders such as a clear scope of work and not asking for any other guideline exceptions.
This is a lender overlay, Fannie Mae only requires 6 months seasoning, and the process can be started prior to the 6 month period. You can cash out at this 6 month time on appraised value.
I want to update this thread I received a call back from the initial lender, turns out he was mistaken after talking to his account executives he realized it was 6 months not 12 for the new ARV. Thank you all though for the reply's.
I thought it was 6 months of seasoning for Fannie/Freddie. That's kind of the whole point of the BRRRR Strategy...!
You might want to keep shopping around and ask other lenders.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing