New Seasoning rules for cash buys?

[David B.]

Hi all,

I have been using a credit line to purchase properties in cash. This gives me better leverage to negotiate with the seller. Then I refinance on the other side after Iv done repairs. 

Recently, I spoke with my lender and they said that if I wanted to refinance, I had to wait for a YEAR before I refinance into a conventional loan. They have another loan (5/1 ARM) that I can use in the meantime, but the rate is awful.

Remember - I bought the property cash. I thought seasoning didn’t apply unless I purchased the original property with a loan, but I guess that’s not true? 

Do cash bought homes also have to season for a year before I can finance my cash out? 

Yikes 

[Timothy Hero]

Conventional is always more strict. My lenders are DSCR lenders and that side is much easier. 3 month seasoning if there's a lien and 6 months if you paid cash, but you can start the process at 5 months.