seasoning

2 Replies

There are several programs that allow for no seasoning cash out refinances for investors and further information would be needed to determine suitability:

a. Are you seeking to base the refinance on the original purchase price or new appraised value?
b. How do you intend to document your income/assets (loan program is available in a variety of DOC requirements; SIVA, SISA, FULL DOC, No Ratio)?
c. What LTV/CLTV do you require (Max. will range from 90-95 depending...)?
d. Do you intend to sell the property shortly after refinancing (this will determine if a PPP is appropriate or not)?
e. How many investments do you currently have financed (certain lenders cap investors on the amount of properties that can be financed at one time)?
f. How's your credit score?
g. How's your debt to income ratio?

This information will be required during your consultation with the mortgage professional of your choice in order to determine if a definitive "YES" would apply in your case.

Regards,

Scott Miller

Kevin,

Scott pretty much summed up most of the information that a mortgage consultant would need to confidently advise you if this would be possible.

I can tell you though that if you have at least a 620 score and have 20 properties or less, that regardless of your employment history, income, or assets you should be able to qualify for a cash out refinance with no seasoning up to 80% ltv.

There are definitely higher ltvs available but it would require a second mortgage to be added on along with the first and the guidelines are tougher for the 2nd mortgages.

A conventional loan does not have any seasoning requirements. Most all lenders will do a straight conventional cash out refinance immediately after you've purchased or rehabbed.

When you start getting into reduced doc loans or high ltv transactions, the program will switch over to an alt-a loan. There are only several conventional lenders left that offer this type of financing.

If your score is under a 620, more than likely you'll need a subprime lender. All subprime lenders have seasoning restrictions. A couple are set at 6 months.

Seasoning shouldn't be an inssue if only want to payoff existing purchase money liens. There's tons of lenders for those.

Teaming up with a mortgage consultant that specializes in investment loans should be a priority for all investors.