Cash out refinance

[Gavin Doyle]

Hi everyone! My first property that I am closing on just refinanced for $60,000 over what I offered on it. Would it be smart to do a cash out refinance once the title is switched into my name? Thank you!

[Kristen L Garner]

Hi Gavin, congrats on your acquisition and gained equity! To do a cash out refinance you will need to adhere to seasoning requirements. I think you meant to say it "appraised for $60,000 over", right? Conventional and FHA requirements are 12 months right now and DSCR (or any non-QM product) is typically 6 months. So you will need to have owned the property for a period of time before doing a cash out refi. There are products that allow you to do it sooner but they will generally make you use the lesser of the purchase price and the appraisal amount which wouldn't be ideal for your scenario. If I misunderstood your post feel free to shoot me a DM with details of your scenario and I can run numbers for you.

Again - congrats on your first property!!