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Updated almost 2 years ago,
New Cash Out Refinance Requirements
Hello there! Could someone give me a little more color on the new Fannie Mae guidelines for initiating a cash out refinance? Would love any thoughts around how BRRRR strategies are changing with this new update!
https://capitalmarkets.fanniemae.com/mortgage-backed-securities/updates-cash-out-refinance-eligibility
According to this article:
Today, Fannie Mae updated its eligibility policy for cash-out refinance transactions to require that any existing first mortgage being paid off through the transaction be at least 12 months old as measured from the note date of the existing loan to the note date of the new loan.
Lenders are encouraged to implement these changes immediately but must do so for all cash-out refinances with note dates on and after April 1, 2023.