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 present a strategic advantage when buying a home.  Cash purchases can leverage a lower price and or can be more attractive than a competing financed offer.

The challenge in the past is that paying cash has tied up an investor’s liquid resources.  This can limit an investors ability to leverage financing in order to strengthen their investment portfolio.  It can also hijack opportunities to use cash for other interest earning opportunities or just the comfort of having cash on hand.

Apply for a No Seasoning Refinance

No Seasoning Refinance Cash Out

On a standard cash out refinances, borrowers must wait out a painful 6 month “seasoning” period (6 months must have passed after they purchased) before they could do a cash out refinance.   However, if a buyer paid cash for a home, they DO NOT have to wait 6 months.

A cash buyer can turn around do a cash out refinance the day after their cash purchase closes.  Owner occupants, second/vacation home buyers can replenish their cash with a no seasoning cash out refinance immediately following their purchase – now 6 month seasoning wait!

No 6 Month Seasoning Cash Out Refinance

  1. Cash out refinance home loan may not exceed initial cash paid amount for property + refinance loan settlement charges
  2. Must have been a cash purchase
  3. Source of funds used to purchase must be documented
  4. No liens exist on the subject property
  5. Maximum loan to value limits for 1 unit properties are:
    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 investors and buyers to leverage a cash offer initially and then untimely still finance their home with a home loan.

Apply for a No Seasoning Refinance

Acceptable Sources of Cash for Initial Purchase

On a no seasoning cash out refinance, a borrower can only pull cash back out of a recently purchased property if the cash used to purchase the property came 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

Borrowers may NOT refinance a hard money loan with this program.  The applicant must also be the individual that purchased the property being refinanced.  The property cannot have closed in anyone else’s name or in the name of an entity such as an LLC.

Apply for No Seasoning Refinance

By Jeremy House

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