6 month cash out refinance still applicable?

Question

Anyone finding lenders who do 6 month cash out refinances lately? All of the lenders I’ve used are/have pivoted to 12 month seasoning periods. Not sure if this is a product of the changing times or its just time to look for new lenders

Jacob Sherman · Answer

right now there is availability in the market for no seasoning cashout upto 80%

Brittany Minocchi · Answer

If you're talking about conventional cash outs, the requirement is still 12 months if you want to pull based on ARV, otherwise you're limited to pulling based on purchase price. If you're open to other options, you can do a refi with 6 months seasoning (or even no seasoning as long as you can document the rehab in some cases - before/after pics, receipts, invoices, etc. FYI, these types of loans will have prepayment penalties and higher fees than conventional financing.

Erik Estrada · Answer

Hey Daniel,

There are many lenders that will allow no seasoning as long as there is rehab completed on the property. Happy to connect

Khemraj Sarju Jr. · Answer

30 days seasonings is one of our specialties.

Ko Kashiwagi · Answer

HI Daniel,

Are you only looking for conventional loans? Most conventional loans have adjusted to 12 months seasoning. Alternatively, you could explore these options:

1. Explore local/regional banks - smaller banks often have more flexibility especially if you have a good relationship

2. Private lenders - private lenders are typically more concerned with the value of the property

3. DSCR loans - there are DSCR loans that have much shorter seasoning period like 3 months and 6 months, and these financing doesn't require tax returns or W-2

Ginna Stauble · Answer

I have a DSCR lender available for cash out with zero seasoning, and some with 3 months and the rest have 6 months. Or were you only looking for conventional loans?

Jaron Walling · Answer

Daniel, yes unfortunately Fannie Freddie guidelines changed this year and the lenders that offer conventional loans have to follow those rules. Our lender adjusted to 12 months as well. It's a strong reason to shop lenders and look for differnet loan products. We're not remodeling property currently but if we were I couldn't work with our local lender.

NO WAY I'm trapping cash for 12 months.

6 month cash out refinance still applicable?

6 month cash out refinance still applicable?

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