How to get a cash-out refinance on a newly purchased property?
May 22, 2009 7:44 PM Subscribe
Stupid-mortgage-company-filter. Is it possible to get a cash-out refinance on an investment property without going through the 6-12 month seasoning process?
We're scheduled to close on a property this Tuesday. The mortgage fell through at the last minute because of a combination of crazy new lender rules and bureaucratic incompetence. Luckily, we can pay cash, but we need to replace that cash immediately to rehab the house. Immediately = within a few weeks. Every lender and broker I've spoken to says that everyone is now following Fannie Mae's guidelines, which require 6 months of seasoning (being on title) for a primary residence and 12 months of seasoning for an investment property. Some lenders say "it's possible that some lenders won't have to follow the Fannie guidelines" and can give us a refi faster. I have called a bunch of lenders and these remain mythical so far.
What kind of lenders might be in a position to give no-seasoning loans? We are willing to pay a somewhat higher interest rate because the loan is not huge.
We're also open to creative alternative suggestions for financing the rehab. Incidentally, the seller is being completely intransigent and postponing the closing date is not an option, but it's a great deal and we want the house. Thanks for any help!!!!