Cash Purchase Followed by Cash Out Refi - Timing

[Kristin Haug]

Hi BP Community - I'm looking to invest in a new single family construction and interested in a cash out refi from the start - if it's possible. The local market is very hot and agents have highly recommended making cash offers to increase the likelihood of seller acceptance. I think I can gather the full amount in cash for this transaction (borrowing some from family), however, I don't want to keep 100% locked up and would like to do a cash out refi as soon as possible after closing, leaving a 75-80% LTV.

I spoke briefly with a friend who’s new to the mortgage business and they thought you’d need to wait 6 months after closing before being able to start this process, but they weren’t certain. Hoping someone in this awesome BP community might have insights into whether this can be done earlier than 6 months in, even if it requires taking a different strategy. Open to any and all ideas. Thank you all!