Financing in San Jose>Question Details

Alex, Home Owner in San Jose, CA

Cash-out refinance, more than 4 properties (5 total).

Asked by Alex, San Jose, CA Mon Feb 18, 2013

I own 5 single family properties. 4 properties are financed. I bought the fifth property in June 2012 as a rental and paid with cash. Is it possible to cash out refinance for my fifth property and do I have to wait one year to apply?

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We can do with Private funds but our rate and terms are a bit higher.
2 votes Thank Flag Link Mon Feb 18, 2013
Easy, easy guys. No need to be nasty.
This is a question that must be carefully reviewed under the Delayed Financing rules of FNMA.
When owning over 4 properties, cash out can be pulled out for the first six months only.
After six months (and over 4 properties no financing)
4 or under properties, they can borrow at any time. Prior to six months they must use the original purchase price after six months new value.

If a borrower wants to pull cash out of a property paid for cash, they can do so in the first six months of ownership. They may own up to 10 properties.

They must provide the HUD1 closing statement and proof of 'seasoned' funds or evidence of equity line, etc. along with evidence of wire transfers and/or cancelled EMDs.

The kicker here is length of time in ownership.
1 vote Thank Flag Link Thu Feb 21, 2013
Hi, Claudia, I have a question for you regarding your comment on an owner who paid in cash who wants to pull cash out. How much of a mortgage can be placed on the property? You mention documentation needed. The HUD1 I understand...what do you mean by "proof of 'seasoned' funds or evidence of equity line, etc. along with evidence of wire transfers and/or cancelled EMDs"? Thanks.
Flag Mon Jan 6, 2014
Sheryl, as Shane already pointed out, delayed financing is not an option because it's more than 6 months since purchase of property #5. You need to check your guidelines.
1 vote Thank Flag Link Wed Feb 20, 2013
Mario, you should share your magic lender with the rest of us. I'm sure everyone is anxious to know.
1 vote Thank Flag Link Wed Feb 20, 2013
My lender can make this work up to 10 loans. Give me a call or email me and I can put you in touch with the right lender.
I work with many investor clients who deal with the same restrictions. But there are solutions!
1 vote Thank Flag Link Tue Feb 19, 2013
Mario Pinedo,…, Real Estate Pro in Beverly Hills, CA
Charles, Fannie Mae WON'T back this transaction because Alex purchased his rental property in June of 2012, so to be eligible for the delayed financing exception his application would've had to be made by December of 2012. It is now February of 2013.
1 vote Thank Flag Link Mon Feb 18, 2013
Fannie Mae will back these loans but they're rare and are a total pain. See the web reference for the details.
1 vote Thank Flag Link Mon Feb 18, 2013
You couldn't use regular Fannie Mae or Freddie Mac conforming loan programs for the cash out refinance on a free & clear investment property while also having 4 other financed properties, you would need to utilize a non-conforming loan program (also called "portfolio" loan programs). New Penn Financial (max 65% LTV) & Advancial Credit Union (max 50% LTV) both offer such loan programs.

Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct
1 vote Thank Flag Link Mon Feb 18, 2013
To anyone looking to cash out on investment propertes.... I do have a very aggressive program that will allow you to cash out and does not require tax returns. Please email me at to discuss any scnerios.
0 votes Thank Flag Link Fri Jan 31, 2014
I have a very unique program where you can get cash out on your investment properties even if you own more than 10 financed properties. The only requirement is that the subject property has positive cash flow.

This is not hard money, great rates.

CALL TODAY: (323) 648-7643

Nicholas Sharp
Allstate Bancorp
8383 Wilshire Blvd. Suite 1030
Beverly Hills, CA 90211
Direct #: (310) 254-6506
BRE# 01941171 NMLS# 1066216
0 votes Thank Flag Link Thu Jan 30, 2014
I understand that this has been answered and or already resolved....
But for those who find this by way of Google, I want to offer one of our portfolio products that will allow up to 20 properties financed. This is very uncommon and may help one of the many investors that are always looking for financing options in this limited lender market. Please note that you will have to have 3 months PITI in reserve for every financed property..


Michael Ross
206-890-twelve hundred
Our office serves WA,OR,CA
0 votes Thank Flag Link Tue Apr 16, 2013
Do you service Florida?
Flag Wed Jul 3, 2013
Sheryl, I'm glad you have a portfolio product that can do this, but what you just stated is not exactly true.

To refresh your memory, you said wrote: "I also offer a delayed financing unlimited cashout up to 10 homes. The only limits are the maximum loan amount is 417k and what ever the value depending on owner occupied, non owner occupied."

This is untrue. Investor and second home borrowers with five to ten financed properties are ineligible for cash-out refinance transactions unless all of the delayed financing exception requirements are met; one of them being they must happen within 6 months.

You should specify of this is a portfolio product otherwise people may incorrectly believe this is available through Fannie's delayed financing exception; which it is not.
0 votes Thank Flag Link Wed Feb 20, 2013
the simple answer is yes you can do a cash out loan on your properties. You are however limited in how much of the equity you can use. With good credit you would have access to most loan programs. Less than stellar credit would require you to use a private money lender where rates would be a bit higher and most loans would limit you to about 60% the value of the property and also have a balloon payment in the next 3 years or so. Terms could be negotiated with the right private lender. If you have additional questions feel free to contact me.
0 votes Thank Flag Link Mon Feb 18, 2013
Thank you for your question, Alex:

I recommend that you talk with Doug Jones, the owner of Mortgage Magic.

Doug has been a lender for over 40 years and has a great deal of expertise in this area.

I recommend that you go to Doug's website at:

You can also reach Doug Jones at his office: (408)975-2400

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address:
0 votes Thank Flag Link Mon Feb 18, 2013
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