How long does it take for a cashout refinance?

Question

After a acquiring a rental property how long does it take to do a cash out refinance on it to start buying more rental homes?

Tyler Mullen · Answer

@Lawrence Holloway Depends how you do it.  If you use a residential product there's a 6 month or more requirement for the property to be in your name and occupied.  If you go with a commercial product there can be no seasoning requirement and then your answer is as long as it takes to process the loan, 20-30 days usually.  Did one last fall, owned it for a week,  loan complete within that range.

Tyler Mullen · Answer

Should be same, with 4 might be possible to do a small portfolio commercial loan so it’s one app instead of 4.  Check around locally with smaller banks that do commercial lending and see what they have to offer.

Michael Glaspie · Answer

@Lawrence Holloway speak with lenders. Every lender is slightly different. Most have traditional Fannie/Freddie products, but others may have products offered by smaller lenders.

One product you should look into is one called 'Delayed Financing'. Especially if you are buying them, turnkey. The biggest piece of the puzzle is HOW are you buying these. If you purchase all cash, you can finance as soon as possible. There are no time constraints to finance a property that you own outright.

If you have an existing loan, there may be prepayment penalties, or some other restriction,  that you need to be aware of.

Best of luck.

Nicholas Covington · Answer

@Lawrence Holloway

Like most have stated, it just depends on who you speak with. I always encourage investors to partner with a good mortgage broker. They are able to locate programs that do not have a seasoning requirement at all. Normally though you do need to have experience with investing or own you own home though.

Specifically you would be looking for a program such as a DSCR investor program. That is my main go to program I offer to investors for their BRRRR and buy and holds.

You are welcome to PM me for some more information.

Lawrence Holloway · Answer

@Tyler Mullen

Thanks Tyler,  What if you’re buying 4 SFR that are tenant occupied with no plans to renovate in the near future?

William Murden · Answer

@Lawrence Holloway, I am in the process of fixing up my rental. My lender told me, I must wait 6 months then I can do a cash-out refi.

How long does it take for a cashout refinance?

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