When can I cash-out based on appraisal value?

[John D.]

Hi All-

Right now the LTV of my loans are based on purchase price, or purchase price + documented rehab cost. How long do i normally have to wait, before we can base the LTV on the appraisal value?

[Eddie T.]

Most banks that use Freddie or Fannie rules have a 6 month waiting period after purchase before you can use appraisal value before using purchase price.

If you find a bank that keeps their loans in house (portfolio loans) and do not package and sell their loans then you may find one that does not have the 6 month seasoning requirement. And they may let you use appraisal value immediately after a sale. 

Your best bet is to find an investor friendly bank in the area you are investing.