If i buy a property with cash, how soon can i refinance it with the bank?

Asked by Newbuyer, 10017 Wed Jun 2, 2010

Help the community by answering this question:

+ web reference
Web reference:


Eden Lim, Agent, La Habra, CA
Thu Sep 20, 2012
It depends on the lender, but in most cases 6 month.
2 votes
Joseph Domino, Agent, Scottsdale, AZ
Wed Jun 2, 2010
This is something that you should investigate thoroughly before proceeding. Since you will not be using the money to purchase the home, it will look like a "cash out" refi. Many banks today are not offering this type of loan. In addition since this will not be purchase money it may not be considered a non-recourse loan meaning should you default later on you will not be exempt from debt collection and taxes on the debt forgiven.

Speak with a lender and tax professional before proceeding to make sure you understand what your situation will be like if you decide to go this route.
2 votes
Alex Montelo…, Agent, Seal Beach, CA
Fri Mar 28, 2014
That is a great question. It looks from the answers you've already received that the majority of banks will require you to wait at least six months. Although there seem to be some that will loan sooner. Banks have been changing the guidelines quite often in the past several years. I think I will ask my preferred lender to get the answer myself.

Best of luck.
0 votes
Andres Moral…, Agent, Tustin, CA
Wed Apr 10, 2013
Depending on the lender you can refinance right away but most lenders may require six months.
0 votes
Edgar Escand…, , Seattle, WA
Thu Jun 3, 2010
That depends whether you want to use the purchase price as your value base, if so, 6 months with most conventional lenders.
If you want to use new appraised value, assuming higher than purchase price, then at least 12 months from date of purchase.
You may be better off with an equity lender (hard money) for the interum, so you can perhaps refinance anytime and without the cash out fees and restrictions associated with a cash out refi.
Community banks and portfolio lenders will have their own specific criteria.
0 votes
Bonnie Kulka, Agent, Coto de Caza, CA
Thu Jun 3, 2010
I agree with Joseph. You should speak to a good lender before you decide to do this. The banking rules seem to change very quickly.

Bonnie Kulka
0 votes
Scott Godzyk, Agent, Manchester, NH
Thu Jun 3, 2010
The amount of time for seasoning (form when you purchased until they will loan) will differ between programs. The minimum of most programs is 3 months while soem other have a 6 month waiting period.

Your best bet is to contact a local and trusted mortgage company who can prequalify you at no cost an dlet you know if there are any programs you will quailify for, what their seasoning is, what their rates and closing costs are.

good luck with working things out
Web Reference:  http://www.ScottSellsNH.com
0 votes
M. Kay DeRig…, Agent, Irvine, CA
Wed Jun 2, 2010
Dear Newbuyer,

I am not aware of any banks that will loan you the money without a six-month wait period after the cash transaction closed escrow. Hope that helps. M. Kay DeRight, Evergreen Realty & Loans
0 votes
Emily Knell, Agent, Huntington Beach, CA
Wed Jun 2, 2010
Joseph makes a great point of how to look before you leap in to this market. Think ahead of how much money you think you would want to cash out with whether it be within 1mo-5yrs and instead, obtain a loan to purchase with that figure in mind.

562-430-3053 cell
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more