No seasoning cash out refinancing

Member since 2024 · 10 posts · 10 votes

Any cash out refinancing options that would not requiring seasoning?

From my own research this is unlikely. At best I've seen 6 month seasoning periods.

I am targeting properties that have been on the MLS for longer than the average. Hopefully purchase for a discounted price. I'd mortgage them. Do a light rehab to increase ARV. Refinance and pull my down payment back out to start the next. Pretty much a classic BRRR.

I'm hoping not to have my down payments tied up for a 6 months to a year before I can repeat the process.

Any help and advice is truly appreciated.

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AJ ExnerPro Member

Lender · Springfield, MO · Member since 2023 · 656 posts · 318 votes

Hey Sean,

Should have quite a bit of DSCR options at 90 days, or even less. Especially if you have done even a little bit of work to the property.

Just keep good records/Scopes of Work on your rehab as some groups might limit you to a certain percentage over your cost (say 120% of cost basis), but still enough usually to get DP back.

Happy to connect to talk through it if you are interested.

Good luck!

[email protected]417-427-2612

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AJ ExnerPro Member
Lender · Springfield, MO · Member since 2023 · 656 posts · 318 votes
1y
Hey Sean,

Should have quite a bit of DSCR options at 90 days, or even less. Especially if you have done even a little bit of work to the property.

Just keep good records/Scopes of Work on your rehab as some groups might limit you to a certain percentage over your cost (say 120% of cost basis), but still enough usually to get DP back.

Happy to connect to talk through it if you are interested.

Good luck!
[email protected]417-427-2612
2 Reply
Noah WrightBusiness Member
USA, Nationwide · Member since 2024 · 217 posts · 96 votes
1y
Quote from @Sean Spagnola:

Any cash out refinancing options that would not requiring seasoning?
From my own research this is unlikely. At best I've seen 6 month seasoning periods.
I am targeting properties that have been on the MLS for longer than the average. Hopefully purchase for a discounted price. I'd mortgage them. Do a light rehab to increase ARV. Refinance and pull my down payment back out to start the next. Pretty much a classic BRRR.
I'm hoping not to have my down payments tied up for a 6 months to a year before I can repeat the process.
Any help and advice is truly appreciated.

Hi Sean, absolutely! As long as you put more than $10k into upgrades, you can cashout essentially immediately. Happy to help--
[email protected]737-773-3717
2 Reply
Brandon BeardtPro Member
Lender · La Crescenta, CA · Member since 2021 · 261 posts · 157 votes
1y
Quote from @Sean Spagnola:

Any cash out refinancing options that would not requiring seasoning?
From my own research this is unlikely. At best I've seen 6 month seasoning periods.
I am targeting properties that have been on the MLS for longer than the average. Hopefully purchase for a discounted price. I'd mortgage them. Do a light rehab to increase ARV. Refinance and pull my down payment back out to start the next. Pretty much a classic BRRR.
I'm hoping not to have my down payments tied up for a 6 months to a year before I can repeat the process.
Any help and advice is truly appreciated.

I have experience with ARV cash out options with no title seasoning as long as you can show work/rehab has been done on the property. Very popular tool used for BRRRR investors trying to scale as fast as possible.
[email protected]818-726-2418
1 Reply
Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 667 votes
1y
Quote from @Sean Spagnola:

Any cash out refinancing options that would not requiring seasoning?
From my own research this is unlikely. At best I've seen 6 month seasoning periods.
I am targeting properties that have been on the MLS for longer than the average. Hopefully purchase for a discounted price. I'd mortgage them. Do a light rehab to increase ARV. Refinance and pull my down payment back out to start the next. Pretty much a classic BRRR.
I'm hoping not to have my down payments tied up for a 6 months to a year before I can repeat the process.
Any help and advice is truly appreciated.
Sean, no seasoning cash outs definitely exist. You just gotta find the right lenders happy to chat if you have any questions.
[email protected]860-538-3672
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- Julie Stevens
  Member since 2025 · 4 posts · 0 votes
  1y
  Quote from @Devin Peterson:
  
  Quote from @Sean Spagnola:
  
  Any cash out refinancing options that would not requiring seasoning?
  From my own research this is unlikely. At best I've seen 6 month seasoning periods.
  I am targeting properties that have been on the MLS for longer than the average. Hopefully purchase for a discounted price. I'd mortgage them. Do a light rehab to increase ARV. Refinance and pull my down payment back out to start the next. Pretty much a classic BRRR.
  I'm hoping not to have my down payments tied up for a 6 months to a year before I can repeat the process.
  Any help and advice is truly appreciated.
  Sean, no seasoning cash outs definitely exist. You just gotta find the right lenders happy to chat if you have any questions.
  
  Devin, what is no season cash out?
  0 Reply
- Devin PetersonBusiness Member
  Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 667 votes
  1y
  Quote from @Julie Stevens:
  
  Quote from @Devin Peterson:
  
  Quote from @Sean Spagnola:
  
  Any cash out refinancing options that would not requiring seasoning?
  From my own research this is unlikely. At best I've seen 6 month seasoning periods.
  I am targeting properties that have been on the MLS for longer than the average. Hopefully purchase for a discounted price. I'd mortgage them. Do a light rehab to increase ARV. Refinance and pull my down payment back out to start the next. Pretty much a classic BRRR.
  I'm hoping not to have my down payments tied up for a 6 months to a year before I can repeat the process.
  Any help and advice is truly appreciated.
  Sean, no seasoning cash outs definitely exist. You just gotta find the right lenders happy to chat if you have any questions.
  
  Devin, what is no season cash out?
  
  Cashing out without having to wait 90+ days to use the appraised value
  [email protected]860-538-3672
  ProAlpha Capital56 Reviews
  Website View Page
  0 Reply
Tarik Turner
Lender · Hackensack, NJ · Member since 2016 · 1k+ posts · 372 votes
1y
depending on the lender 90 days to 6 months is fairly common to base a cash out refinance on the as is value. Anything within that 90 day period is typically looked at as a delayed purchase and the loan will be based on the purchase price (if purchased with cash)
1 Reply
Brittany MinocchiBusiness Member
Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
1y
Yep! I do them regularly, as long as there was enough rehab completed to justify using the appraised value over the purchase price. If the properties are in NY, you might run into issues there though.
[email protected]330-354-6590
Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
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Andrew PostellPro Member
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
1y
@Sean Spagnola as mentioned above, no seasoning absolutely exists. Even 90 day seasoning is pretty good in most cases too but there's a pretty big issue for your strategy.
For most residential, cash out loans, the limit of the cash out loan is 75% of the ARV. So, if you purchase a home, and hope to get back your 20% downpayment...that would mean you would need to buy AND rehab the loan for like 55% of the ARV. You need to do both the REHAB and PURCHASE for that amount because you can only get 75% of the ARV back on the cash out step. In other words, this would be impossible. Or pretty close to impossible.
A classic BRRRR Method transaction usually doesn't have us doing a cash out loan. It also normally comes from off market transactions. Now, I see the same youtube videos and the same ticky tok videos you do...but this is the reality of it. Buy offmarket, Rehab, still refinance, but we use a different loan type to acquire the property that doesn't need a downpayment. If you come out of pocket 0% (which is possible) or pretty close to it...but don't have a cash out loan...are you ok with that? Of course! And that's what we normally do.
Hope all of that makes sense but feel free to reach out with any questions.
2 Reply
Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
1y
Quote from @Sean Spagnola:

Any cash out refinancing options that would not requiring seasoning?
From my own research this is unlikely. At best I've seen 6 month seasoning periods.
I am targeting properties that have been on the MLS for longer than the average. Hopefully purchase for a discounted price. I'd mortgage them. Do a light rehab to increase ARV. Refinance and pull my down payment back out to start the next. Pretty much a classic BRRR.
I'm hoping not to have my down payments tied up for a 6 months to a year before I can repeat the process.
Any help and advice is truly appreciated.

Yes, however you will need to show at least $10k in rehab completed to use the full new appraised value
[email protected]818-269-7983
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1 Reply
Matthew TysonPro Member
Investor · San Antonio, TX · Member since 2022 · 43 posts · 42 votes
1y
The lender I have been working with does as long as some work has been put in and there is a tenant in place. Otherwise you are looking at a delayed financing product which is up to 80% purchase plus renovation costs.
[email protected]
1 Reply
Alex Hunt
Lender · Member since 2022 · 441 posts · 134 votes
1y
Hey @Sean Spagnola a lot of lenders will say no, almost all traditional banks are saying no! Need a good DSCR lender for this, it is doable for no seasoning especially since you are doing renovations, more than $25,000 right? Then you could get a 75%LTV cashout refinance for that next down payment!
Happy to connect on this.

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