Fannie Mae Cash Out Refi for 5-10 Units. New regulations?

[Bryan O.]

I spoke to a lender yesterday and they said that there are new rules on cash-out refinances for the 5th through 10th property in Fannie Mae. As explained to me, it basically means that you can't do the typical process of purchase, remodel, season for 6 months, appraise, cash-out refinance. You will only be able to use the original purchase price.

Does anyone have any information about this? Or can perhaps tell me using small words what the 5-10 property cash-out refinances look like?

[Kyle J.]

I believe what the lender is referring to is Fannie Mae's Delayed Financing Exception which is used to do a cash-out refi on properties 5-10 within (not after) 6 months of purchase. 

Here's a blog on the topic: All About Delayed Financing