Seasoning period for a BRRRR property

[Hailey Brown]

BRRRR Strategy Question -- If I am using cash to buy the property and cash to rehab the property, when I go to refinance is there still a seasoning period before I can get a loan? Or in this case would this be different since there isn't an initial loan to refinance?

[Brian Garrett]

Yes there will be a 6 month minimum seasoning requirement if you refinance with a conventional Fannie/Freddie loan. You can circumvent this by using a commercial/portfolio loan but the rate and term will be less favorable. Alternatively since you're purchasing with cash you can use the delayed finance exception which has no seasoning but going this route won't allow you to use the ARV for the refinance.