Putting a mortgage on my primary residence that I bought cash

[Sean Connolly]

I am purchasing my grandmother's house from my family as my primary residence. They are giving me a great "family" discount. My plan is for my wife and I to purchase it in cash, renovate it, and then put a mortgage on it to pull out the equity to invest. I spoke with my usual lender (RP Funding) and they told me that I couldn't refinance (put a mortgage on it) until I've owned it for 6 months. This didnt sound right since I've heard so much about the BRRRR strategy on bigger pockets. I was under the assumption that I could refi immediately when done renovating since I purchased the house in cash. Any information would be much appreciated. Thank you very much!!

[Kerry Baird]

This is called the Fannie Mae Delayed Finance Exception. It should be an arms length transaction, meaning you paid market price and have no relation to each other. If you hadn’t paid cash, six month seasoning is typical.