No Seasoning Cash Out Home Loan

No 6 month Seasoning Refinance

No Seasoning Cash out Refinance

Savvy buyers often pay cash for a property for a number of reasons.  Cash purchases provide price leverage.  Also, they tend to be more attractive than competing financed offers.  However, paying cash ties  up liquid resources and limits an investors ability to leverage.  Finally, there is a solution to this common conundrum.

Apply for a No Seasoning Refinance

No Seasoning Refinance Cash-Out

First of all, home-buyers must typically wait out a long 6 month “seasoning” period before completing a cash-out refinance.  This rule is often what complicates a buyer’s decision to finance or use cash for a home purchase.  However, buyers that paid cash for a home DO NOT have to wait 6 months.

A cash-out refinance can be started the day after your cash purchase closes.  In fact, this applies to a primary residence, vacation home or investment home purchase.  A no seasoning cash-out refinance immediately following a cash purchase without a 6 month seasoning – what could be better?

No Seasoning Cash-Out General Requirements

  1. New loan amount may not exceed cash paid for property + refinance loan settlement charges
  2. Subject property must have been a cash purchase
  3. Only acceptable souces of purchase funds permitted (see below)
  4. No liens allowed subject property prior to refinance
  5. Maximum loan to value limits (1 unit):
    1. Owner Occupied 85%
    2. Second Home/Vacation Home 75%
    3. Investment Home 75%
  6. All other/normal cash out guidelines apply

This is a great way for cash buyers to leverage a cash offer initially and then ultimately finance that same property.  To make it better, there is no 6 month waiting period to do so.

Apply for a No Seasoning Refinance

Limitations on No Seasoning Cash-Out Refinance

Finally, there are a few limitations worth mentioning.  While most of these are not typically an issue, it is important to make sure before committing to a new cash-out refinance.

  • Borrowers may NOT refinance a hard money loan
  • Buyer of subject property and borrower for the cash-out loan must be the same
  • Subject  property cannot have closed in an LLC.

Acceptable Sources of Cash for Initial Purchase

On a no seasoning cash-out refinance, borrowers can pull cash back out of their recently purchased property if the purchase cash was from an acceptable source.  Acceptable sources include:

  1. Cash from borrower’s own financial accounts
  2. Funds from a home equity line of credit
  3. Funds from a personal loan

In conclusion, cash buyers have access to what the mortgage industry calls “delayed financing”.   In short, the no seasoning cash-out refinance loan allows buyers to pay cash first.   Then, at a later or “delayed” point in time and without a 6 month wait that same buyer can pull cash out and finance the same property.

Apply for a No Seasoning Refinance

By Jeremy House


  1. […] (this product may only be used if scenario meets delayed financing guidelines – click HERE for […]

  2. […] than 4 financed properties.  That is, unless subject is their primary or they qualify for “delayed financing.”  Freddie Mac however does allow cash out refinances for borrowers owning up to 6 financed […]

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