BRRRR method and conventional loans

[Lance Neighbors]

Hey guys, I need your help clarifying something. Every time I listen or read something that relates to BRRRR, I see where it essentially says that it can't be accomplished if the original financing is a conventional loan. With that being said, my situation is a little different. Whereas I do have a 20 year loan with a credit union, I didn't have to put anything down and was able to get enough for the rehab as well. I spoke with the lender and was advised that I could refinance the property in a year. With all the details I've given, does it seem as if I can execute BRRRR effectively by doing it this way?

[Joseph Hammel]

I believe for a conventional the min is 6 months. Your credit Union most likely has a overlay. (That means they have a more strict requirement than the minimum) You could check with more banks. Here's a link to fannie Mae https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B2-Eligibility/Chapter-B2-1-Mortgage-Eligibility/Section-B2-1-3-Loan-Purpose/1736853471/B2-1-3-03-Cash-Out-Refinance-Transactions-07-03-2019.htm#Eligibility.20Requirements

Pro tip, and I'm not being a wise ***. Fannie Mae info is very Google friendly. I typed "fannie Mae seasoning requirements" to get this result.