Private lending companies allow you to get around some aspects of traditional lending (like how many loans you have - where Fannie Mae has restrictions there)... but they ARE going to look at your track record, and they are also ALWAYS going to make sure you have money in the game too.  

Fannie Mae has an exception to the seasoning period for cash buyers, called the "Delayed Financing Exception."

If you don't want to do that, then yup you gotta pay Uncle Sam his cut if you want some of Aunt Fannie Mae's subsidized borrowed money.

The rates just aren't as good, because it's Fannie Mae that is setting the guidelines for self-employment history. 

Speaking with different lenders, I haven't been able to get a straight answer..bit of additional info--using my wife's w2 for conventional loan-from what i read on Fannie Mae's website it seems like it would acceptable if it's a primary residence.

Fannie Mae, Freddie Mac type loans.  

Fannie Mae is officially rolling out this program in a couple days.

There is a video on the site featuring 6 industry experts and Bruce Norris interviews Doug Duncan (Fannie Mae), Leslie Appleton-Young (CAR), Eileen Reynolds (California Builders Industry Association), David Kittle (former Mortgage Bankers Association chair), and Sean O'Toole.  

I believe you need 12 months of seasoning now before you cash out. 12 months for Fannie Mae as of Feb 1st on cash out refi  but not private lenders

Since this plan entails going after a conforming loan, it will be sold off to Fannie Mae, then re-securitized and sold off as part of a MBS.