No seasoning lenders in Texas

San Antonio, Texas
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No seasoning lenders in Texas

Rakari Mcpherson
Member since 2019 · 2 posts · 1 vote

Hello fellow investor. I’m in the process of completing 2 brrr property’s and I’m looking for a lender in Texas that doesn’t require seasoning periods, for a cash out refinance. Any recommendations or advice on this subject ? 

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Jay HurstBusiness Member
Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
3y
Quote from @Rakari Mcpherson:

Hello fellow investor. I’m in the process of completing 2 brrr property’s and I’m looking for a lender in Texas that doesn’t require seasoning periods, for a cash out refinance. Any recommendations or advice on this subject ? 

 @Rakari Mcpherson If you are looking to refi into a conventional loan (which is going to have the best rate and terms) with cash out then the seasoning period has actually gone up to 12 months. A lot of LO's do not know this yet, but they will find out when their deals go to underwriting. If you are looking for a DSCR then those seasoning periods depend on the individual product as they are all a little bit different. However, they all have the same con in that they have higher interest rates but also higher upfront costs. The majority also have pre-payment penalties which is not great if you are stuck with a higher rate mortgage.

We do have a no seasoning bridge product that will allow you to pull cash out right away with no pre-payment penalty then immediately refinance into a conventional loan.  The seasoning period only relates to a cash out loan, but your conventional refi is NOT a cash out. You have already taken the cash out on the bridge loan. 

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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    If you want full LTV you will need to have owned the property for 6 months. Anything under you can pull out 70% LTC.

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  • Rakari Mcpherson
    OP
    Member since 2019 · 2 posts · 1 vote
    3y

    Thanks for the replies guys. So I have found some lenders that doesn't require a seasoning period. But the terms doesn't really fit my wants or needs at the moment. Would it just be best to wait the 6 month and refinance. Does this required seasoning period help me max out my LTV %?

    0Reply
  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    3y
    Quote from @Eliott Elias:

    If you want full LTV you will need to have owned the property for 6 months. Anything under you can pull out 70% LTC.

     75% ltv is available at 3 months.

    @Rakari Mcpherson

    Yes, you're better waiting at least 3 and possibly 6 months.  If the numbers work, you can go to 80% ltv at 6 months.  PM for additional details if you don't get additional answers on the thread.

    Stephanie

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  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    3y
    Quote from @Rakari Mcpherson:

    Hello fellow investor. I’m in the process of completing 2 brrr property’s and I’m looking for a lender in Texas that doesn’t require seasoning periods, for a cash out refinance. Any recommendations or advice on this subject ? 

     @Rakari Mcpherson If you are looking to refi into a conventional loan (which is going to have the best rate and terms) with cash out then the seasoning period has actually gone up to 12 months. A lot of LO's do not know this yet, but they will find out when their deals go to underwriting. If you are looking for a DSCR then those seasoning periods depend on the individual product as they are all a little bit different. However, they all have the same con in that they have higher interest rates but also higher upfront costs. The majority also have pre-payment penalties which is not great if you are stuck with a higher rate mortgage.

    We do have a no seasoning bridge product that will allow you to pull cash out right away with no pre-payment penalty then immediately refinance into a conventional loan.  The seasoning period only relates to a cash out loan, but your conventional refi is NOT a cash out. You have already taken the cash out on the bridge loan. 

    Hurst Real Estate, INC4.992 Reviews
    WebsiteView Page
    1Reply
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