By Mo Abdel, NMLS #1426884 | Published February 26, 2026
The bottom line: "Seasoning" is the minimum time you must own a property before a lender will approve a cash-out refinance. Requirements range from zero days (VA loans) to 12 months (some jumbo and non-QM lenders). The most common requirement is 6 months of ownership for conventional loans through Fannie Mae and Freddie Mac. The delayed financing exception allows immediate cash-out for all-cash purchases under conventional guidelines.
| Loan Type | Ownership Seasoning | Payment History Required | Delayed Financing Allowed |
|---|---|---|---|
| Conventional (Fannie/Freddie) | 6 months | 6 months on-time payments | Yes |
| FHA | 6 months | 6 on-time payments required | No |
| VA | None (VA guideline) | Lender-specific (0–6 months) | N/A (no seasoning needed) |
| Jumbo | 6–12 months (lender-specific) | Varies by lender | Lender-specific |
| Non-QM | 3–12 months (lender-specific) | Varies by lender | Some lenders allow |
| DSCR (Investment) | 0–6 months (lender-specific) | Varies by lender | Some lenders allow |
Quick Answer: Cash-Out Refinance Seasoning Requirements by Loan Type
- Conventional: 6 months ownership from deed recording date (Fannie Mae/Freddie Mac)
- FHA: 6 months ownership + 6 on-time mortgage payments (both required)
- VA: No agency-level seasoning requirement (lender overlays may apply)
- Jumbo: 6–12 months typical, varies by lender (no agency standard)
- Non-QM: 3–12 months depending on lender and LTV requested
- DSCR: 0–6 months for investment properties (varies significantly)
- Delayed financing exception: Allows immediate conventional cash-out for all-cash purchases
| Seasoning Type | What It Measures | Clock Starts From |
|---|---|---|
| Title / Ownership Seasoning | How long you have owned the property | Deed recording date at county recorder |
| Mortgage Seasoning | How long you have had current mortgage | First payment date on existing loan |
| Refinance Seasoning | Time since last refinance closed | Closing date of previous refinance |
What Does "Seasoning" Mean for a Cash-Out Refinance?
In mortgage lending, seasoning refers to the minimum amount of time that must elapse between specific events — typically a property purchase, deed transfer, or previous refinance — before a lender will approve a new cash-out refinance. Seasoning requirements exist because lenders and government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac use them to reduce fraud risk and verify stable ownership patterns.
As a wholesale mortgage broker working with 200+ lenders, I encounter seasoning requirements daily. They are one of the most common reasons borrowers face delays or need to switch loan programs. Understanding which loan types have shorter seasoning periods — and which exceptions apply to your situation — can save you weeks or months of waiting.
Title Seasoning vs Mortgage Seasoning: Two Different Clocks
A critical distinction that many borrowers miss is the difference between title seasoning and mortgage seasoning. These are two separate clocks that may not start at the same time:
- Title seasoning (ownership seasoning): Measured from the date the deed was recorded at the county recorder's office. This proves how long you have been the legal owner of the property.
- Mortgage seasoning: Measured from the first payment date of your current mortgage. This proves how long you have been making payments on the existing loan.
For example, if you closed on a home purchase on January 10 but your deed was not recorded until January 15, and your first mortgage payment was due March 1, your title seasoning clock started on January 15 while your mortgage seasoning clock started on March 1. When a loan program requires both (like FHA), both clocks must reach the minimum before you can close your cash-out refinance.
What Are Conventional Cash-Out Refinance Seasoning Rules?
Conventional cash-out refinances follow Fannie Mae and Freddie Mac guidelines, which are the most widely used standards in the mortgage industry. The core requirement is straightforward:
Fannie Mae B2-1.3-02:
• Borrower must have owned the property for at least 6 months (measured from deed recording date)
• At least 6 months of on-time payments on the existing mortgage
• Maximum LTV: 80% for primary residence, 75% for investment property
• Exception: Delayed financing waives the 6-month waiting period for cash purchases
The 6-month ownership period is measured from the date the deed was recorded — not from the contract date, not from the closing date, and not from the date you moved in. The recording date is verified through a title search during the refinance process.
Rate-and-Term Refinance vs Cash-Out Refinance Seasoning
It is important to distinguish between cash-out and rate-and-term refinance seasoning requirements because they differ:
| Requirement | Rate-and-Term Refinance | Cash-Out Refinance |
|---|---|---|
| Ownership seasoning | No minimum (conventional) | 6 months from deed recording |
| Maximum LTV (primary) | Up to 97% | Up to 80% |
| Cash back to borrower | Maximum $2,000 or 2% (whichever is less) | No limit (within LTV cap) |
| Pricing adjustment | Standard pricing | Cash-out pricing adjustment applies |
How Does the Delayed Financing Exception Work?
The delayed financing exception is one of the most valuable rules in mortgage lending for real estate investors and buyers who purchase properties with cash. This Fannie Mae rule allows borrowers to perform a cash-out refinance immediately after a cash purchase without waiting the standard 6-month seasoning period.
Delayed Financing Requirements
- All-cash purchase: The original purchase must have been made without any financing — no mortgage, no HELOC, no private lending, no seller financing. The property must have been purchased entirely with the buyer's own funds or documented gift funds.
- Clear title: The title search must show no liens or encumbrances on the property at the time of the cash-out refinance application.
- Cash-out limited to purchase price: The maximum cash-out amount is limited to the original documented purchase price plus closing costs, regardless of current appraised value. If you bought for $500,000 and the property now appraises for $700,000, you can only cash out up to $500,000 plus closing costs.
- Source documentation: You must provide documented proof that the purchase funds came from eligible sources (bank accounts, investment accounts, documented gift). The settlement statement from the purchase must show no financing.
- Standard LTV limits apply: The new loan must still meet standard conventional LTV requirements (80% for primary residence).
Why Delayed Financing Matters
Delayed financing is widely used by investors who purchase properties at auction (where cash is required), buyers competing in hot markets where cash offers win, and borrowers who close quickly with cash then refinance to replenish their liquidity. Without this exception, these buyers would need to wait 6 months before accessing their equity through a conventional cash-out refinance.
What Are FHA Cash-Out Refinance Seasoning Requirements?
FHA cash-out refinance seasoning rules are stricter than conventional guidelines and require two separate conditions to be met before the new loan can close:
- 6 months of ownership: The borrower must have owned the property for at least 6 months from the deed recording date.
- 6 on-time mortgage payments: The borrower must have made at least 6 consecutive on-time payments on the existing mortgage being refinanced. Late payments within the 6-month window disqualify the borrower.
Unlike conventional loans, FHA does not offer a delayed financing exception. Borrowers who purchased with cash must still wait the full 6 months before completing an FHA cash-out refinance. Additionally, FHA cash-out refinances have a maximum LTV of 80% and require FHA mortgage insurance for the life of the loan.
Why Does the VA Have No Cash-Out Seasoning Requirement?
The VA loan program is unique among major loan programs because the Department of Veterans Affairs does not impose a minimum ownership seasoning period for cash-out refinances. This means eligible veterans and active-duty service members can theoretically close a VA cash-out refinance the day after purchasing a home.
However, there are practical limitations. Individual VA-approved lenders may impose their own lender overlays that add seasoning requirements (commonly 0 to 6 months). VA cash-out refinances also allow up to 100% LTV on primary residences — the most generous LTV of any major loan program — and do not require private mortgage insurance.
VA Cash-Out Refinance Key Advantages
- No agency seasoning requirement (lender overlays may apply)
- Up to 100% LTV on primary residences
- No private mortgage insurance (VA funding fee applies instead)
- Competitive rates due to VA guaranty
- Available for veterans, active-duty, and qualifying surviving spouses
What Are Jumbo and Non-QM Cash-Out Seasoning Rules?
Jumbo and non-QM loans are not sold to Fannie Mae or Freddie Mac, so they are not bound by GSE seasoning guidelines. Instead, each lender sets its own seasoning requirements based on its risk appetite and investor guidelines. This creates significant variation across the market.
| Loan Type | Common Seasoning Range | Max LTV (Cash-Out) | Notes |
|---|---|---|---|
| Jumbo (primary) | 6–12 months | 70–80% | Some allow 6 months; max LTV often requires 12 months |
| Jumbo (investment) | 6–12 months | 65–75% | Stricter requirements for investment properties |
| Non-QM (bank statement) | 3–12 months | 70–80% | Self-employed borrowers; shorter seasoning at lower LTV |
| Non-QM (asset depletion) | 3–6 months | 65–75% | Qualifies on assets rather than income |
| DSCR (investment) | 0–6 months | 70–80% | Some allow day-one cash-out; LTV tied to seasoning length |
| Foreign national | 6–12 months | 60–70% | Limited lender options; longer seasoning typical |
This is where a wholesale broker provides the most value. With access to 200+ lenders, I can identify which investment property cash-out refinance lenders match your specific seasoning timeline, LTV needs, and property type.
How Do Special Situations Affect Seasoning Requirements?
Inherited Properties
Properties received through inheritance are generally exempt from standard seasoning requirements under Fannie Mae guidelines. The rationale is that the borrower did not purchase the property for profit, so the fraud concerns that seasoning rules address do not apply. Required documentation includes:
- Death certificate of the previous owner
- Probate court order or trust documentation
- Recorded deed showing transfer to the inheriting borrower
- Evidence of relationship to the deceased (if required by lender)
Divorce-Related Property Transfers
When a property is transferred between spouses (or former spouses) as part of a divorce decree or legal separation agreement, the transfer is typically exempt from seasoning requirements. The receiving spouse can proceed with a cash-out refinance without waiting the standard 6-month period, provided:
- A recorded divorce decree, legal separation agreement, or court order documents the transfer
- The quitclaim deed or interspousal transfer deed has been recorded
- The refinance removes the departing spouse from the mortgage
Properties Acquired Through a Trust
When a property is held in a revocable living trust and the beneficiary becomes the owner (typically upon the trustor's death), conventional guidelines generally treat this similarly to an inheritance. The new owner may be exempt from standard seasoning requirements, though some lenders require additional documentation of the trust terms and beneficiary designation.
People Also Ask: Cash-Out Refinance Seasoning
Can I do a cash-out refinance right after buying a house?
Only if you purchased with all cash and use the delayed financing exception, or if you use a VA loan with no seasoning requirement. Standard conventional and FHA rules require at least 6 months of ownership before a cash-out refinance. Some DSCR lenders allow immediate cash-out on investment properties.
Does the 6-month seasoning start from closing or from deed recording?
Seasoning starts from the deed recording date, not the closing date. The deed is typically recorded 1–5 business days after closing. This distinction matters when you are close to the 6-month mark. Your title company can confirm the exact recording date from county records.
Can I use appraised value or only purchase price for a cash-out refinance?
After meeting the seasoning requirement, you can use the current appraised value for LTV calculations. The exception is delayed financing, which limits the cash-out to the original purchase price plus closing costs. Once 6 months of ownership has elapsed, a standard cash-out refinance uses the new appraised value.
Do I need seasoning for a rate-and-term refinance?
Conventional rate-and-term refinances have no minimum seasoning requirement from Fannie Mae or Freddie Mac. You can refinance for a better rate or different term immediately after closing. FHA Streamline refinances require 6 months from closing and 6 payments. VA IRRRL requires 210 days from first payment.
What if I refinanced recently and want to do another cash-out refinance?
There is no explicit waiting period between consecutive cash-out refinances under conventional guidelines beyond the standard 6-month ownership rule. However, multiple refinances in a short period may trigger lender scrutiny, and you must have sufficient equity after each cash-out. Most lenders look for at least 6 months since the last refinance closed.
Does renovation increase the value used for seasoning calculations?
After 6 months of ownership, the appraised value (including renovation improvements) determines your available equity. Before 6 months, delayed financing limits you to the original purchase price. This is why many investors who plan to renovate wait for the 6-month seasoning period to expire before refinancing, so they can capture the post-renovation appraised value.
Are cash-out refinance seasoning requirements different for investment properties?
The ownership seasoning period is the same (6 months for conventional), but investment properties have lower maximum LTV limits. Conventional investment property cash-out refinances are capped at 75% LTV (compared to 80% for primary residences). DSCR lenders may have different seasoning requirements entirely.
Frequently Asked Questions: Cash-Out Refinance Seasoning Requirements
What does seasoning mean for a cash-out refinance?
Seasoning refers to the minimum time you must own a property or hold your current mortgage before qualifying for a cash-out refinance. Lenders and agencies use seasoning requirements to verify stable ownership and reduce fraud risk. The clock typically starts from the recorded deed date or from the date of your first mortgage payment, depending on the loan program.
How long do I have to wait for a conventional cash-out refinance?
Conventional cash-out refinances through Fannie Mae and Freddie Mac require 6 months of ownership seasoning. The 6-month clock starts from the date the deed is recorded in your name. You must also have made at least 6 months of on-time mortgage payments if refinancing an existing loan. The delayed financing exception waives this requirement for all-cash purchases.
Does the VA require seasoning for a cash-out refinance?
The VA has no specific ownership seasoning requirement for cash-out refinances, making it unique among major loan programs. Eligible veterans and active-duty service members can apply for a VA cash-out refinance immediately after purchasing a home. However, individual VA-approved lenders may impose their own minimum seasoning requirements, typically 0 to 6 months.
What is the delayed financing exception for cash-out refinance?
The delayed financing exception is a Fannie Mae rule that allows borrowers who purchased a property with all cash (no financing) to immediately do a cash-out refinance without waiting 6 months. The maximum cash-out amount is limited to the original purchase price plus closing costs. This exception requires a clear title report and documented proof of the cash purchase.
What is the FHA cash-out refinance seasoning requirement?
FHA cash-out refinances require both 6 months of ownership (deed recording date) and 6 on-time mortgage payments on the existing FHA or non-FHA loan being refinanced. Both conditions must be met before the new FHA cash-out loan can close. There is no delayed financing exception under FHA guidelines.
How is the seasoning period calculated for a cash-out refinance?
Seasoning is calculated from the date the deed was recorded at the county recorder office for ownership seasoning, or from the first payment date for mortgage seasoning. For example, if your deed was recorded on January 15, 2026, the 6-month ownership seasoning is met on July 15, 2026. Lenders verify the deed recording date through a title search.
What are DSCR loan seasoning requirements for cash-out refinance?
DSCR (Debt Service Coverage Ratio) cash-out refinance seasoning requirements vary by lender, with most requiring 3 to 6 months of ownership. Some DSCR lenders allow immediate cash-out for investment properties, while others require 12 months for maximum LTV. Through a wholesale broker, you can access DSCR lenders with shorter seasoning periods that fit your investment timeline.
Do jumbo loans have different seasoning requirements for cash-out?
Jumbo cash-out refinance seasoning requirements vary significantly by lender because jumbo loans are not governed by Fannie Mae or Freddie Mac guidelines. Most jumbo lenders require 6 to 12 months of ownership seasoning. Some require the property to have been owned for at least 12 months to qualify for maximum LTV. A wholesale broker can compare seasoning requirements across multiple jumbo lenders.
Does inheriting a property affect cash-out refinance seasoning?
Inherited properties are typically exempt from standard seasoning requirements under conventional guidelines. Fannie Mae does not require a 6-month waiting period for inherited properties because the inheritance itself establishes rightful ownership. The borrower must provide documentation of the inheritance, such as a death certificate, probate order, or recorded deed transfer.
How does a divorce affect cash-out refinance seasoning requirements?
When a property is transferred between spouses as part of a divorce decree, conventional guidelines generally exempt the transfer from the standard 6-month seasoning requirement. The borrower receiving the property through divorce can proceed with a cash-out refinance immediately after the deed transfer is recorded, provided a court order or divorce decree documents the transfer.
Can I do a cash-out refinance on a property I just bought?
Under standard conventional rules, you must wait 6 months after purchasing a property before doing a cash-out refinance. The exception is the delayed financing rule, which allows immediate cash-out if you purchased with all cash and no financing. VA loans have no seasoning requirement. FHA requires 6 months plus 6 payments. DSCR and jumbo seasoning varies by lender.
What is the difference between title seasoning and mortgage seasoning?
Title seasoning measures how long you have held ownership of the property (from deed recording date). Mortgage seasoning measures how long you have had your current mortgage (from first payment date). Some loan programs require both. For example, FHA cash-out requires 6 months of title seasoning AND 6 on-time mortgage payments, which are two separate clocks that may not align.
Expert Summary: Navigating Cash-Out Refinance Seasoning
Cash-out refinance seasoning requirements are one of the most important timeline factors in any equity extraction strategy. The conventional 6-month ownership requirement is the industry standard, but the VA's zero-seasoning policy and the delayed financing exception provide powerful alternatives for borrowers who need faster access to their equity.
For investors using cash-out refinances as part of a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy, understanding seasoning requirements is critical to projecting cash flow and timeline. The 6-month conventional seasoning period also serves as a natural window for completing renovations before capturing the post-renovation appraised value.
As a wholesale mortgage broker with access to 200+ lenders, I navigate seasoning requirements daily. Each lender interprets guidelines differently, and the variation in jumbo, non-QM, and DSCR seasoning policies means that the right lender match can save you months of waiting. Whether you purchased with cash and need delayed financing, inherited a property with no seasoning requirement, or need a DSCR lender with day-one cash-out capability, I will identify the fastest path to your equity.
Check Your Cash-Out Refinance Eligibility
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Mo Abdel | (949) 822-9662
NMLS #1426884 | Lumin Lending NMLS #2716106