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Personal Finances / Buying or Selling a Home


Subject:  Re: Cash out refi on recent purchase Date:  2/13/2013  2:44 PM
Author:  Dwdonhoff Number:  124761 of 128973

Hi Crack'd,

I can't find guidelines that prevent this loan, but I seem to remember there is a seasoning requirement on ownership prior to allowing a cash out transaction. Loan receives an Accept from Fannie decision engine, but I'm not so sure. Loan would have to follow Fannie guidelines.

'Accept' is a Freddie determination....
'Approve' is Fannie.
Either way, if they say they'll buy the loan as you've entered it, do the deal!

There is no seasoning requirement on cashout after a purchase... but there may be cashout LTV restrictions (which <60LTV is below, in any & all cases,) and there are certainly seasoning restrictions for the purposes of using a higher appraised market value over the executed contract purchase price...

FYI, at least one portfolio bank rep I just asked told me they'll allow "same as purchase" refi terms (in other words, 95% cashout) up to 6 months after cash purchase.

Dave Donhoff
Leverage Planner
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