No Seasoning Cash Out Refinancing for Real Estate Investors

We've waited for this one to come back ... now it's here. If you have investor clients or you are an investor who has paid cash for a property within the last six months this may be good news for you. Of course, as will all things, there are caveats and qualifications. Just a few of which are:

• The new loan amount can be no 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/HCLTV ratios for the transaction).
• The purchase transaction was an arms-length transaction.
• The transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property.
• The sources of funds for the purchase transaction are documented (such as, bank statements, personal loan documents, HELOC on another property).
• All other cash-out refinance eligibility requirements are met and cash-out pricing is applied.

There are a few more as well but for the most part this will help recoupe some cash on long-term hold properties as you wait for the market to fully recover. There is a form on this page to request more information or you can just pick up the phone and call me. I am in GEORGIA ONLY at this time though my company is in most states.