Refinance after cash out- Any waiting period?

[Rian Ash]

Hi BP Members,

Here is the situation,

I own an investment property since 2017. I recently did a cash out refinance which paid off the initial mortgage and I got some cash out. Now, I want to refinance again and lower my rates. The lender is saying there has been 6 months wait between cash out and then subsequent refinance. I couldn't find any fannie mae regulations for this. 

Does anyone know if there is any such regulations or this is just an overlay which the lender has created?

Thanks,

Rian

[Chris Mason]

Technically you can refinance in less than six months. However, it's an ethical violation for reasons mentioned. I would turn away the business, unless the old lender was one of the big banks. I'm fine with sticking it to them. :)