I think that's a fannie mae guideline but pretty much followed by everyone,

Ned -I'm not arguing (I'm definitely no expert in this area), but if that's the case, how do HUD, Fannie Mae and other lenders get away with providing mortgages to homeowners?

Fannie Mae prescribes that it has to be held for 12 months before it can be treated as a refi.

Fannie Mae did up the limit to 10, but it is nearly impossible to find a bank that will do more unless you do a portfolio loan.

But they weren't able to do the loan I need, but they're pretty investor-friendly and only do portfolio loans, so you don't have to deal with ridiculous Fannie Mae rules.

Conventional Mortgages that banks sell to Fannie Mae or Freddie Mac, not to be confused with FHA, do not require owner-occupancy. 

The easiest solution is to pull the TX docs from the Fannie Mae website.

I know that Fannie Mae specifies "that no mortgage financing was used to obtain the subject property", and, requires that "The sources of funds for the purchase transaction are documented (such as bank statements, personal loan documents, or a HELOC on another property)", but, is there a clause that actually forbids using "unsecured borrowed funds" as part of a "cash" closing, before applying for DFE within 6 months? 

Great way to go is buy a wreck of a house at a discount with hard money, get it fixed up and then refi out into a 30-year Fannie Mae or Freddie Mac loan. 

The obvious risk here is that I could have a lot of extra interest over the life of the loan, and higher monthly payments if rates increase.Link: https://themortgagereports.com/65099/fannie-mae-predicts-2-9-percent-mortgage-rates-by-2021I'm in Dallas, Texas right now, and our market is surprisingly getting pretty hot.