Clarification on seasoning period for cash-out refi

[Gary Parilis]

If the seasoning period for a cash-out refi is 6 months, do I need to wait 6 months to apply for the loan or does it just need to close after no less than 6 months? The latter makes more sense, but these rules aren't always rational. :-) 

Let's say I purchased a property on November 15. Six months later is May 15. Do I need to wait til May 15 to apply for a refi, or can I apply, say, April 15 for a disbursement after May 15?

[David Kelly]

@Gary Parilis

6 months and 6 payments must have been made. You can start the process early with no issues but the process of the loan will require proof of that payment posting to the mortgage in order to qualify. So as long as that payment is posted at least a week or so before closing then there shouldn’t be any problems. What state are you in? Let me know if you have any other questions or need some guidance.