cash purchase doesn’t fall under 6 month seasoning?

[Jon Huynh]

So initially i was told by my loan officer that did my refi on my primary, that if i tried to do cash refi on my rentals that i would run into the 6 month seasoning rule. now after 4 months I spoke to his manager and they are now saying that because I bought the properties all cash, the 6 month seasoning rule does not apply? what exactly is the rule for the refi seasoning rule? this just delayed my refi stage by 4 months!

[Corby Goade]

That's true, but it's a bit more complicated than that. The cash purchase must be an arm's length transaction and the LTV is limited and you can't roll many of your expenses in to the refi like you can on a traditional cash out refi. The manager is referring to the delayed financing rule- I'd chat the the lender at length.

I've done this a few times, and in retrospect, I probably should have just waited for the seasoning period and just done a traditional cash out You can pull more equity that way and the process is more simple.