No Seasoning Cash Out refi

Call your local credit unions and smaller banks. The big banks will not offer this option.

Awesome...thanks for the advice.

Although I don't know of any lenders doing cash-out refinances with no seasoning, I'll share a strategy that I'm using on some deals that effectively achieves a similar result.

My partners and I acquired some deals at deep discounts with all cash. We resold them retail with seller financing, and we either sold the note or a partial to recapitalize.

I have found that majority of realtors or mortgage brokers who are 'investor friendly' know of and/or can recommend lenders that don't require seasoning. If you got the right realtor/ mortgage broker, most likely they have such a lender in their "team". Ask them for a referral.

gong through a list of local banks/credit unions. just keep calling until you get the answer you want...yes we do!!!

we own an investment property outright in florida. Does any know of a bank that does not need that seasoning time to cash out bought 5mo ago. Deans book said he used an out of state lender

you may have already passed the seasoning requirement. some 90 days some more. keep on calling till you get the YES

Does anyone currently work with or know of a bank in St. Louis, MO that works with investors? We’re looking for a bank that will do cash out refinances without any seasoning requirements. We would greatly appreciate any help or referrals that you may have.

We've made our 32nd Call so we're looking to narrow down the search a bit.

Thanks,
Chip

There are essentially two types of banks: in house lenders and secondary lenders.
Secondary lenders are the most common. These are banks like Wells Fargo, Chase, Key and others. What they do is create a loan then sell the loan on the secondary market. One of the largest buyers of mortgages in the US is Fannie Mae. If a bank wants to sell a loan on the secondary market to people like Fannie Mae the bank will need to follow Fannie's requirements or Fannie will not buy the loan. This is where restrictions such as one year seasoning, you cannot own more than four houses and similar come from.

The other banks keep their loans for themselves. These are called in house lenders. They do not plan to sell on the secondary market and thus may have different restrictions.

Smaller community type banks have the better chance of being in house lenders that will accept refinances without seasoning or in other words no-seasoned refinances.

The best way to find them is to call, then call and call again. Some will, some won't, so what next. This is where perseverance comes in. You don't need all the banks to do no-seasoned refinances; you just need one.

There are banks that will do no-seasoned refinances. The key as mentioned earlier will be persistence. I have heard of people contacting well into 100 banks and credit unions before they get a yes. But that is all it takes is that one yes.

What if you give up at number 99. The 100th would have said yes.

Keep in mind as well your entire state may have banks that will lend your area. You never know...and you will never know if you do not try and ask.

Anything and everything in this business rides on persistence. If a person is not persistent in this business it will become very hard to do.

You will need persistence with Realtors, buyers, offers, and about everything else you can possibly think of.

Banks are definitely no exception. I am one of those that called a ton of banks before one. In fact in Utah I started at the top of the state and finished at the bottom of the state before I found one. The point is I found one. Persistence if definitely key. Good statement.

Didn't someone start a list of banks that allow non-seasoned cash-out refi's? I thought it was on here but can't find it now.

... But make sure that they will do refinancing on the appraised value, and not on the purchase price (especially if you got a really good deal!).

... And also, some will do refinancing, but only on owner occupied, not investment properties.

...and the search continues... argh!

Valerie

You can find them online. They do no season refis nationally.

As mentioned before you, tracking down some of the local credit unions around you will go a loooong way! I deposit a nominal amount a month in Navy Federal just to keep them on the hook as a credit union.

Take care,
Chad.

Got a quick question, is it easier to get the cash out refi loan approved if you already have a tenant in place? I bought a prop that is undergoing some repairs, but I'm wondering if I should find a tenant first before going to the bank once the repair is done. If it's not much of a difference, I'd prefer to go to the bank while searching for a tenant. After all, time is money!

Anyone has any thoughts or experience?

P.S. There's this lingering fear of appraisals coming in lower than I expect, but I'm gonna fight through it!

The banks I haved worked with want to see most of the work done and a plan that you are going to rent the property out. I received the loan before renters were in place on past deals.

Steve.

after I had a tenant in my first property; the rental income helps solidify your credit-worthiness.
Also, don't tell the bank that you will use the funds to go out and buy more properties; they want to see that you're putting most of the $ back into the property to improve it.

Valerie

This is such a great post and I appreciate everyone who shared their thoughts on this post. I had to save this

God bless you all.

Thanks