BRRRR Refinance Question

[Dustin M Prasuhn]

I was wondering if someone could get in the weeds a bit for the refinance portion of the BRRRR process. My main concern is the seasoning period. Do all lenders require a certain amount of time? What will be required of me and my personal finances so I can get prepared for this? Thanks!

[Stephanie P.]

@Dustin M Prasuhn

Conventional guidelines have a 6 month seasoning period.  Some banks and lenders take it a bit further and say they won't allow the property to use a new appraised value after stabilization for 12 months.  That extra 6 months is an overlay.

There are portfolio lenders that don't sell to GSE's and consequently don't have to comply with their guidelines.  Some have no seasoning and some have just a few months.  

Find a good mortgage broker that can help you navigate the portfolio waters. The rates and fees are higher, so if seasoning is the only thing keeping you from refinancing, you should wait the 6 months, but if you are self employed and take a lot of write off's or you're into a hard money loan and it makes sense to get out of it as soon as possible, get started on a portfolio loan.  30 year fixed rates are in the 5's and 6's with a few points.

Best of luck

Stephanie