Mortgage Seasoning Period

7 Replies

How long is the seasoning period once you purchase a home in cash before you can refinance? Are there lenders out there that have no seasoning requirements? My wife and I are about to purchase a tax deed home and I'm trying to get my timeline down from purchase to rehab complete.

Additionally how much of the value of the home can be refinanced? I’m looking to pull as much money out as possible.

Thanks

If you are looking for a conventional loan, At least one client on title greater than or equal to 6 months prior to closing. If you paid for the property with funds from another mortgage (Example: HELOC) you may be able to do delayed financing.

Hope this helps, 

Happy investing!

Originally posted by @Justin Morris :

(1) How long is the seasoning period once you purchase a home in cash before you can refinance? (2) Are there lenders out there that have no seasoning requirements? My wife and I are about to purchase a tax deed home and I’m trying to get my timeline down from purchase to rehab complete.

Additionally how much of the value of the home can be refinanced? I’m looking to pull as much money out as possible.

Thanks

 (1) Zero days, zero hours, zero minutes.

(2) Yes, many. You just have to find someone local to you in the mortgage industry that is smarter than average.

Note that my answers were predicated on "cash buyer." If you borrowed $100k from your uncle a week prior, you aren't a cash buyer. You purchased with borrowed money, that would make you a financed buyer.

Originally posted by @Chris Mason :
Originally posted by @Justin Morris:

(1) How long is the seasoning period once you purchase a home in cash before you can refinance? (2) Are there lenders out there that have no seasoning requirements? My wife and I are about to purchase a tax deed home and I’m trying to get my timeline down from purchase to rehab complete.

Additionally how much of the value of the home can be refinanced? I’m looking to pull as much money out as possible.

Thanks

 (1) Zero days, zero hours, zero minutes.

(2) Yes, many. You just have to find someone local to you in the mortgage industry that is smarter than average.

Note that my answers were predicated on "cash buyer." If you borrowed $100k from your uncle a week prior, you aren't a cash buyer. You purchased with borrowed money, that would make you a financed buyer.

Does this mean you could buy a property in cash, refinance a week later, buy a second property in cash, and refinance again a week later? If not, what about through a different lender?

Originally posted by @Steven E. :
Originally posted by @Chris Mason:
Originally posted by @Justin Morris:

(1) How long is the seasoning period once you purchase a home in cash before you can refinance? (2) Are there lenders out there that have no seasoning requirements? My wife and I are about to purchase a tax deed home and I’m trying to get my timeline down from purchase to rehab complete.

Additionally how much of the value of the home can be refinanced? I’m looking to pull as much money out as possible.

Thanks

 (1) Zero days, zero hours, zero minutes.

(2) Yes, many. You just have to find someone local to you in the mortgage industry that is smarter than average.

Note that my answers were predicated on "cash buyer." If you borrowed $100k from your uncle a week prior, you aren't a cash buyer. You purchased with borrowed money, that would make you a financed buyer.

Does this mean you could buy a property in cash, refinance a week later, buy a second property in cash, and refinance again a week later? If not, what about through a different lender? 

 Minimum lawful theoretical will be a dozen days or so. Pragmatically, plan for a month per.

Originally posted by @Justin Morris :

How long is the seasoning period once you purchase a home in cash before you can refinance? Are there lenders out there that have no seasoning requirements? My wife and I are about to purchase a tax deed home and I’m trying to get my timeline down from purchase to rehab complete.

Additionally how much of the value of the home can be refinanced? I’m looking to pull as much money out as possible.

Thanks

75% LTV can be cash out on the refi. This from the ARV. Appraisal will be ordered so if your in a hurry you need to establish 10/20 days to close if all your ducks are in a row.