Updated almost 3 years ago on . Most recent reply
Ideal refi products without long seasoning periods
According to Fannie/Freddie guidelines, conventional refi products will require a 6 month title seasoning period before the full 80% of a cash out refi can be withdrawn. This restriction can really put the brakes on expansion and growth for less capitalized investors.
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What are the best products and lenders which offer them that do not have this seasoning period? Are they strictly non-QM products?
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A non-QM product such as a DSCR loan could be a viable option in a scenario where 6 months of seasoning is required via conventional. There are DSCR lenders out there who would be able to pursue a rate-term refinance of your rental property at 80% regardless of seasoning (as long as it was a true rate-term based off of your existing debt) and perform a short seasoned cash-out refinance off of the appraised value in as early as 3 months.