Conventional refinance on the new ARV until after 12 months ?

8 Replies

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?

@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.

@Chris Lord

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.