Short answer
Normally Fannie Mae wants at least one borrower on title for six months before a cash-out refinance. Its delayed financing exception lets you refinance sooner if you bought the property without a mortgage, documented where the cash came from, and the new loan is no more than what you put in plus financed closing costs.
What is the six-month rule for a cash-out refinance?
Under Fannie Mae's Selling Guide, at least one borrower must have been on title for at least six months, counted to the date the new loan funds, before a cash-out refinance. There are exceptions for a home you inherited or were awarded in a divorce, and for delayed financing.
Who qualifies for delayed financing?
- The purchase was an arm's-length sale
- The settlement statement shows no mortgage financing was used
- A title search shows no liens on the property
- You can document where the purchase money came from, such as bank statements or a HELOC on another property
- You bought as a person, through an eligible trust, or through an LLC or partnership you own 100%
How much cash can I take out?
The new loan can be no more than your documented purchase cost plus the closing costs, prepaid items and points you finance, and it still has to fit the loan's limits based on the property's current appraised value. Cash-out pricing applies. Tom shows you the numbers for your property.
What if I borrowed the cash to buy it?
If the purchase money came from an unsecured loan or a loan against another asset, such as a HELOC on your home, the cash-out proceeds must pay that loan off or down, and any remaining payment counts in your debts. Gift money used for the purchase can't be paid back from the new loan.
Why do investors use delayed financing?
Paying cash can make an offer stronger and close faster. Delayed financing then lets you get much of that cash back for the next purchase without waiting six months. DSCR lenders have their own waiting rules, so compare both.
Sources
Checked October 27, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.