You purchased a great investment opportunity. You got short-term financing and fixed it up fast and rented it out. Now, you’re looking to refinance into long-term financing and take some cash out.
But you run into a problem: cash-out refinance seasoning.
Seasoning rules say you have to wait anywhere from 3-6 months after purchasing a property to take cash out, and now 12 months for conventional.
But seasoning doesn’t have to stop you. Here’s how.
Cash-out DSCR loans, no seasoning
Debt Service Coverage Ratio loan approval is based on a rental property’s cash flow, not your personal income.
If the property receives higher rent than its full payment, it will likely qualify. That’s why this loan is a favorite of self-employed real estate investors.
But most DSCR lenders require cash-out seasoning of 3-6 months.
One lender we found does not.
OfferMarket (an REInvestor Guide lending partner) can do a cash-out refinance with no seasoning whatsoever. Even if you just rehabbed and rented a property weeks after acquiring it, you might still qualify.
“A lot of investors buy a property and want to free up cash to further build their portfolios,” says Dan Sperling-Horowitz, founder of OfferMarket. “They quickly find out that most DSCR lenders require six months of seasoning.”
Sperling-Horowitz goes on, “With our no-seasoning rule, an investor could potentially acquire 20 properties over five years instead of 10. BRRR investors should not be penalized for efficiently rehabbing and renting properties.”
Offermarket’s program can also help those refinancing a Fix & Flip loan, or those who paid cash and are now seeking reimbursement plus additional cash based on the new value.
