Fannie guides on cash-out refi's

[Charles M.]

Hey BP'ers!

I was wondering if you could help me with something.

I’m having a problem getting a cash-out refi done due to a change in Fannie guidelines on 6 month seasoning for investment properties. I bought 2 properties w/ cash in December 2012 and was advised at that time that I would need to wait 6 months to do cash-out refi’s. However, it turns out that in August 2012, Fannie lifted the 6 month restriction so investors can cash-out immediately after a cash transaction. The problem I’m having now (7 months after purchase) is that the mortgage broker who is trying to complete a cash-out refi is telling me that there now is a Fannie guideline that states the refi timeline is limited to the first 6 months only and is not allowed after the 6 months. Can you please double-check your guides to see if this is true and let me know? FYI- I currently have 5 mortgages, so we’re talking about loans 6 and 7 potentially. Any information you can provide would be extremely helpful and much appreciated.

Thanks!!!

Charles McNelly