BRRR in Texas... banks won’t allow Cash out 4New Purchase

[Imelda Mendoza]

Ok I bought an investment property in March, and now that I'm trying to do a Refinance Cash out the banks are stating that in Texas we cannot do a cash out unless property is owned for at least a 1yr- HELP- is there anyway around this? My goal was to do the BRRR strategy here.

HELP! 

[David Martin]

@Imelda Mendoza i'm presuming they are trying to reference the 50.a.6 rules? In that specific case, you do have to wait 1 year between refinance, so if you got a cash out refi, you would have to wait for 12 months from your first payment to request another one. If you've never done a cash out refi before, I'm not sure there are any limits that I know of. I would challenge them to tell you what statute from the state or what underwriting guidelines are forcing that requirement so you can know what they are basing that on.

https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B5-Unique-Eligibility-Underwriting-Considerations/Chapter-B5-4-Property-Specific-Products/Section-B5-4-1-General-Reqs-of-Texas-Section-50-a-6-Loans/1736883621/B5-4-1-01-Texas-Section-50-a-6-Loans-12-19-2017.htm