Cash out refi with DSCR loan

[Chris K.]

How long after paying cash for investment home can you do a refi? And can you use a DSCR refi as opposed to conventional?

[Marty Johnston]

@Chris K. the Delayed Financing piece may be the best fit for you! Generally speaking, you receive better terms on Purchase Mortgage Transactions. Cashout Refinances usually see a 5% LTV hit (sometimes more!) over a Purchase transaction. As others have mentioned, you have Cashout refinance options with seasoning periods <6 Mos with some. Some of the best lenders have 12+ mo seasoning (one of my favorites is unfortunately 24-mo seasoning which I find a bit ridiculous!) 

Delayed Financing may be your ticket, as you get best of both worlds. If you have the cash to submit an all cash offer to win the home, you can then obtain a quick "cashout Refi" or Delayed Purchase, so long as you close within 60-90 days after purchasing the property. With Delayed Financing, you get the terms of a Purchase Mortgage, but in the form of a cashout. So still up to 80% LTV (assuming good credit, DSCR of 1.1+, fine area [not rural], and 1-4 Unit property [at least the lender I have in mind])

Since it's purchase money, rates are usually better too! PAR rates in the mid to high 4's on SFHs and high 4's - mid 5's on 2-4 Unit properties. Both have buy down options into the higher 3's or low 4's. There are a lot of lenders out there who offer this option, but not all of them promote it! [not sure why?]

Hope this helps!