Forgotten Your Password?

Need to Register?

Question Icon

Is this new policy apply to rental properties? Which banks allow cashout mortgages without seasoning?

by virginiameza189 from El Paso, Texas. Nov 4th 2015 Reply


Jesse Stroup (jessestroup)
#4 ranked lender in Idaho - 593 contributions

Most investors will cash out on an investment property at 70% to 75%. You might want to call a local mortgage banker/broker.

Nov 4th 2015
1
0
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

Your question is confusing.. but in general, all conforming loan programs have mandatory seasoning when it comes to doing a cash out loan... There might be some portfolio lenders (Hard Money) but expect the loan to value's and rates and fees to be not as favorable.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Nov 4th 2015
1
0

Thank you.

Nov 4th 2015
0
0

I found this on the internet, but I am not sure if this is for primary residences, or if I can get a cash out mortgage for an investment property. Fannie Mae has updated their selling guide to allow cash out refinances without the previously required 6 month seasoning period.Currently, Fannie Mae requires a minimum of six months to elapse between the time a borrower purchases a home and subsequently applies for a cash-out refinance. The Selling Guide has been updated to allow a cash-out refinance within six months of a purchase transaction when no financing was obtained for the purchase transaction under the following parameters:oThe new loan amount is not more than the actual documented amount of the borrower's initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV, CLTV, and HCLTV ratios for the transaction).oThe purchase transaction was an arms-length transaction.oThe purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property.The preliminary title search or report must also confirm no liens on the subject property.oThe source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.oAll other cash-out refinance eligibility requirements are met and cash-out pricing is applied.

Nov 4th 2015
0
0
Mark Hemingway (SFSLend)
#2 ranked lender in Colorado - 994 contributions

Rules can vary depending upon the lender. Most will follow Fannie or Freddie guidelines but some lenders may have what are called overlays. If you are trying to washout within 6 months of purchase (and possibly 12 months) then they will make you go off of purchase price or appraised value whichever is less. But you should be able to go to 70% loan to value on an investment.

Nov 4th 2015
0
0
Subscribe to our news feed.