What is no seasoning cash-out refinance?


No seasoning cash-out refinance takes place usually with investment properties – you may have bought the property yesterday and apply for a new loan on it today. No seasoning means there is no prerequisite to have been into possession of the property for at least some period of time.

This is to distinguish from cash-out refinance for owner occupied properties. There are some lenders that will allow a cash-out refinance on primary residence only thus requiring the owner to have lived on the property for perhaps a year. However, the market is expanding and a no seasoning cash-out refinance is becoming popular with real estate investors.

The no seasoning option can also refer to the funds a buyer is declaring to become eligible for a mortgage rather than the period of ownership and/or inhabitance of the property. For example, the buyer may need to prove that he has had certain funds for at least 2 months.

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