Ownership seasoning
Under Fannie Mae's Selling Guide, at least one borrower generally must have been on title for at least six months before the disbursement date of a cash-out refinance. Exceptions include inherited property and properties awarded through divorce or similar legal actions.
Existing loan seasoning
If you are paying off an existing first mortgage, that loan generally must be at least 12 months old, measured from note date to note date, under current Fannie Mae rules.
How long you must own a home before a conventional cash-out refinance, and how title and recent listings are reviewed.
Delayed financing
Buyers who paid cash may use the separate delayed financing exception, covered in our companion article.
Recent listings
If the home was listed for sale recently, the listing must be cancelled before the refinance, and some lenders will review the listing history.
LLC and trust title
Properties held in certain trusts may be eligible; title changes from an LLC to an individual are reviewed under specific rules.
Value
The lender uses the appraised value, or an appraisal waiver if offered, to calculate the maximum loan.
Other liens
All existing liens on the property generally must be paid off or subordinated.
Why seasoning matters
Seasoning rules reduce the risk of quick flips and fraud.
Ask your lender
Rules change. Ask your loan officer which version of the guidelines applies to your file and whether the lender adds overlays.
Official source
Fannie Mae Selling Guide section B2-1.3-03 covers cash-out refinance transactions.
Sources
Sources checked 10/23/2026. General education only; confirm current rules with official sources and a licensed lender.