cash out seasoning

Cash-out refinance seasoning requirements vary by agency and lender program, but the standard minimum is 6 months of ownership/title seasoning, with select programs requiring 12 months, imposing LTV value caps between 6–12 months, or waiving seasoning entirely at low LTV tiers.

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Agency Guideline Requirements

Fannie Mae

• "At least one borrower must have been on title to the subject property for at least six months prior to the disbursement date of the new loan." Additionally, "an existing first mortgage being paid off through the refinance is at least 12 months old."
• Cash-out LLPAs apply based on LTV and credit score, but are waived for the student loan cash-out refinance feature. Fannie Mae

FHA

• The property must have been "owned and occupied by at least one Borrower as their Principal Residence for the 12 months prior to the date of case number assignment."
• The subject mortgage must also have "a minimum of six months of Mortgage Payments on the current loan."
• Maximum LTV capped at 80%. Cash-out refinances permitted on owner-occupied Principal Residences only.

VA (Nations Direct — VA Cash-Out Matrix)

• The new Note date must be on or after both: (1) "the date that is 210 days after the date on which the first monthly payment was due on the mortgage being refinanced" AND (2) "the date on which six full monthly payments have been made on the mortgage being refinanced."
• For modified loans, the 210-day period runs from the first modified payment due date.

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Lender Overlay / Matrix Requirements

Standard 6-Month Seasoning (Most Programs)

• Nations Direct (Non-QM): "The property must have been purchased or acquired by at least one borrower no less than six months prior to the current application date, and the borrower must have been on title for those six months."
• Greenbox (Underwriting Guide): "At least one (1) borrower must have been vested on title for a minimum of six (6) months prior to the new Note date." Greenbox
• AD Mortgage: "If an existing first mortgage is being paid off through the transaction, it must be at least 6 months old at the time of refinance, as measured by the note date of the existing loan to the note date of the new loan." AD Mortgage
• Mega Capital (Silver Jumbo): "At least one borrower must have owned the subject property for a minimum of 6 months prior to the application date." Mega Capital
• AmWest (multiple programs): "A minimum borrower seasoning requirement of six (6) months is required for a transaction to be eligible for cash-out (at least one borrower on the new loan must have been on title to the subject property [does not have to be on the mortgage] for at least six (6) months prior to the note date of the new loan)." AmWest
• JMAC Lending (ZUMA Prime Non-Conforming): Minimum borrower seasoning of six (6) months is required.
• JMAC Lending (DSCR Prime): Minimum borrower seasoning requirement of six (6) months is required.
• Windsor Mortgage: A property must have been purchased or acquired by the borrower at least six months prior to the disbursement date of the new mortgage loan.
• Newfi Lending (Rainier / Sequoia DSCR): Properties owned 6 months or more are eligible for cash-out.

12-Month Overlay

• Nations Direct (Freddie Mac Matrix): "Cash Out — 12 Months seasoning is required."
• Nations Direct — FHA (GNMA overlay): "In addition to meeting FHA seasoning, all cash out transactions must meet GNMA seasoning. The new Note date must be on or after: the date that is 210 days or more after the date on which the first monthly payment was due on the mortgage being refinanced, and the date on which six (6) consecutive monthly payments have been made on the mortgage being refinanced."

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LTV Value Caps When Seasoning is Under 12 Months

• Nations Direct (Non-QM): "If the property has been owned less than 12 months, but greater than six months, the property value is limited to the lower of the current appraised value or the property's purchase price plus documented improvements."
• New Wave Lending (Expanded Portfolio / WAVE): "For properties owned 12 months or longer, the LTV/CLTV is based upon the appraisal value. If the subject property was purchased within 6–12 months prior to application date, the LTV will be based on the lesser of the sales price (+any documented improvements) or the current appraised value." New Wave Lending
• AmWest: Same 12-month value limitation applies across Bank Statement, Asset Qualifier, and Advantage programs. AmWest
• Nations Direct (Ignite Bank Statement / Full Doc / P&L): "Properties owned 6 months or longer at application date can use appraised value to determine LTV. If purchased less than 6 months prior to application date a 5% reduction from maximum qualifying LTV is required and property value is limited to the lesser of the current appraised value or purchase price plus documented improvements." Nations Direct Nations Direct

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No Seasoning Required — Special Programs / Low LTV Tiers

• New Wave Lending (EP, WAVE, DSCR 1–4 Units): "No Title seasoning is required on the following programs: EP, WAVE, DSCR 1-4 Units." New Wave Lending
• AmWest (multiple programs): "For Owner Occupied and Second Homes with LTV ≤ 50%, no seasoning requirement is required. For Investment properties with LTV ≤ 70%, no seasoning requirement is required." AmWest AmWest

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Exceptions to the 6-Month Seasoning Requirement

Virtually all lenders and agencies allow a seasoning waiver under the following documented circumstances:

• Inheritance — Borrower acquired the property through inheritance
• Legal Award — Property was legally awarded through divorce, separation, or dissolution of a domestic partnership
• LLC/Entity Look-Back — Time held in an LLC or trust may count toward seasoning, subject to majority ownership thresholds (generally 51%+ or 50%+, depending on lender)
• Delayed Financing — Property was purchased for cash within the prior 6 months; LTV capped at the lower of appraised value or purchase price plus documented improvements; loan treated as cash-out for pricing purposes

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Prior Cash-Out Transaction Restrictions

Multiple lenders prohibit a new cash-out refi if a prior cash-out was completed within the past 6 months on the same property:

• JMAC Lending (ZUMA): A prior cash-out transaction within the past six (6) months is listed as ineligible.
• New Wave Lending: "Been a prior cash out transaction within the past 6 months (measured from recording date to the app date)" renders the loan ineligible. New Wave Lending
• AD Mortgage (VA): "Borrowers may not have multiple cash-out transactions within the prior 12 months on the same property."
• New Wave Lending (Rate/Term after prior Cash-Out): "Minimum 12 months seasoning is required if previous refinance was cash-out (previous note date to new note date)... Loans do not meet this requirement will be considered as cash-out." New Wave Lending

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Texas 50(a)(6) Special Rule

A 12-month seasoning period is universally required before doing another Texas Home Equity cash-out on the same property: "A Section 50(a)(6) loan may not be closed sooner than 12 months after the closing of a previous Section 50(a)(6)." Nations Direct Nations Direct

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Quick-Reference Summary Table