New Fannie Mae cash-out Refinance seasoning Requirement.

[Jose Bernard]

As we all know, in the recent weeks Fannie Mae changed their seasoning period requirement for conventional cash-out refinances. It changed from 6 months to 12 months. I'm wondering, what is your take on how these changes affect the Brrrr strategy and RE investing as a whole? 

[Robin Simon]

Quote from @Jose Bernard:

As we all know, in the recent weeks Fannie Mae changed their seasoning period requirement for conventional cash-out refinances. It changed from 6 months to 12 months. I'm wondering, what is your take on how these changes affect the Brrrr strategy and RE investing as a whole? 

Yes - as the other commentators have suggested, DSCR loans are the ideal option to replace conventional with in these situations. However, always remember that its not necessary to cash-out using the BRRRR method - especially with a good amount of pressure on home values and rates still high, BRRRR investors should be open to lower leverage refinances that make sure the property is comfortably cash-flowing and going with rate-term refis when appropriate