Refinancing a Cash Purpose

[Timothy Jacobson]

Good evening all,

We have recently completed our first cash purpose that we have rehabbed and are currently renting. From what I hear, there is a 6 month seasoning period until we could refinance (thus placing cash back in our pockets). How true is this? Are we limited to this "seasoning period"? Is there any ways out of this? Thanks for the feedback!

Tim

[Chris Mason]

Hi @Timothy Jacobson, and s/f.

Search the forums for "Delayed Financing Exception." It has been discussed in depth. Here's a link to the raw guideline, if you want to attempt to decipher it.

TLDR is that no you do not have to wait six months, but it has to have actually been a cash purchase, or other restrictions may apply. 

Use of DFE is best coordinated with your local REI friendly lender ahead of time. The P's apply here -- prior proper planning prevents...