NO Seasoning Cash-Out Florida Mortgage Lenders

NO Seasoning Cash-Out Florida Mortgage Lenders

Yes, you can! No Seasoning Cashout Refinance Florida mortgage Loan solutions to meet your needs. Did you just Quitclaim and need a cash-out in Florida? Or, do you have a high mortgage interest rate you’re looking to lower? Our Rate & Term refinance may be able to help. No season cashout refinance to tap into the equity of your current investment? Our Cash Out refinance solution can help!

NO Season – No Income Verification – Cash-Out Investor loans in Florida!

• Cash-Out refinance is allowed, regardless of ownership seasoning ( even on DSCR) ????
•  Use the higher of the 1007 or the lease to qualify on DSCR ( if lease is higher need 2 months evidence receipt)
• Loan Amounts up to 3.5 Million
•  For DSCR transactions, use the highest representative score for qualifying
•  Vacant properties are allowed on DSCR with proof that the property is marketed for rent.
•  FTHB is allowed on DSCR up to $2 million ( 6 months reserves / 700 fico/ 12-month VOR required) – (not available on Manf/ITIN/ FN)
• RURAL LTV is now 75%
• DSCR Rate and Term now has LTV up to 80%
• Max Acres is 20

Qualifications

• Min of a 620 FICO call for LTV
• No Seasoning on Cash-Out Refinances
• Loan Sizes up to 3.5 Million
• Max LTV to 85% w/ 720 scores
• Quitclaim Cap After quit claim deed = 65%
• Up to 6% Seller Contributions Allowed
• Use for either Purchase, R&T, and Cash-Out Available
• No Ratio available with LTV restrictions and credit score
• Gift Fund can be used & is Allowed just not for RESERVES

Eligible Properties

• Single Family Detached
• Up to 4 Units are Allowed
• PUDs are Allowed
• Rural Properties are Allowed
• Double Wide Manufactured Homes are Allowed
• Low-rise and High-rise Condominiums

Recycle Capital Faster: No Seasoning Florida Cash Out Refinance

Seasoning Florida cash-out requirements can significantly impact real estate investors. While most Florida mortgage lenders require you to hold the loan for at least 6 months (aka “seasoning”), Our FLorida mortgage lenders offer cash-out refinancing as soon as the rehab is completed!

Here are two scenarios where no seasoning requirements can supercharge your investing strategies:

Cashout Refinance After Quickclaim Deed No Seasoning Florida

What Is A No Seasoning Florida Mortgage Lender?

A “no seasoning Florida mortgage mortgage lender” allows borrowers, typically real estate investors or those with recent adverse credit, to access cashout home equity or Florida mortgage refinance immediately after purchase or credit event, bypassing standard waiting periods (like 6-12 months) that most Florida lenders usually require to “season” funds or credit history, often using private Florida mortgage loans or specific investor programs to quickly use improved Florida home property value or overcome past issues like bankruptcy. 

Investor No Income Verification Mortgage Summary

No-income verification Florida mortgage loans for investors use the Debt Service Coverage Ratio to qualify instead of the borrower’s personal income. The Debt Service Coverage is used to show how much of the rental income is used to cover the total debt service. The borrower is required to sign a Business Purpose and an Occupancy Certification stating that they will not occupy the property as a primary home.

DSCR Restrictions

• The borrower must sign a non-occupied certification that the Borrower or the borrower’s immediate family cam any time occupy the subject property
• When the subject property is encumbered by a bank/cross-collateral loan, the transaction is considered a cash-out. A copy of the note will be required to verify the payoff.

DSCR Experienced Investor

• An experienced residential investor is a borrower/guarantor having a history of owning and managing non-owner occupied residential real estate for at least one (1) year in the last three (3)
years. Ownership of commercial income-producing property may also be used as evidence of investor experience.
o For files with more than one borrower/guarantor, only one borrower/guarantor must meet the definition.
• Ownership history can be documented for other REOs with one of the following:
o Mortgage history on credit report
o Property profile report
o Other 3rd party documentation (e.g., Fraud Report, Settlement Statement, Closing Disclosure)

First-Time Investor:
• A borrower/guarantor not meeting the Experienced investor criteria. Borrower/Guarantor must currently own primary residence for at least one (1) year.
• Ownership history can be documented with one of the following:
o Mortgage history on credit report
o Property profile report
o Other 3rd party documentation (e.g., Fraud Report, Settlement Statement, Closing Disclosure)

First Time Investors restrictions:

• DSCR Florida’s lowest Credit Score Minimum: 580 case by case.
• If reported, no mortgage late payments during the past thirty-six (36) months.
• Minimum of 36 months seasoning from any credit event.
• Cash-out transactions not eligible.
• First-time homebuyers are not eligible.
• If the loan amount is < $100,000, the minimum DSCR needs to be 1.00.

Filling Out The Mortgage Application!
The income section needs to be left Blank.
o If the borrower is currently employed, the employment section should be completed including a valid phone number.
o For REO’s section, not all REOs need to be listed. The REO section needs to be completed to show the borrower meets either First Time Investor or Experienced Investor. List
the PITI(A) payment for the subject and primary residence of the borrower if applicable. Property under the LLC name is not required to be listed on the application unless the borrower needs
to prove landlord experience.

Asset Documentation
o 2 months of full bank statements all pages required for downpayment, closing cost, and reserves.

Documenation Requiements

o Long-term or Short term Rental OK! 
o Purchase Transaction OK!
▪ Monthly Gross Rents are the monthly rents established on FNMA Form 1007 or 1025 reflecting long-term market rents.
▪ If the subject property is currently tenant-occupied, the 1007 or 1025 must reflect the current monthly rent.
• If using the lower of the actual lease amount or estimated market rent, nothing further is required.
• If using a higher actual lease amount, evidence of 2 months of receipt is required, and the lease amount must be within 120% of the estimated market
rent from 1007/1025. If the actual rent exceeds the estimated market rent by more than 120%, the rents are capped at 120%.
• If using a higher estimated market rent from 1007/1025, it must be within 120% of the lease amount. If the estimated market rent exceeds the lease
amount by more than 120%, the estimated market rent is capped at 120%.

▪ A vacant or unleased property is allowed without LTV restriction.
▪ Unit subject to rent control or housing subsidy must utilize current contractual rent to calculate DSCR.
o Refinance Transactions:
▪ Required Documentations:
• FNMA Form 1007 or 1025 reflecting long-term market rents and lease agreements.
• If the lease has been converted to month-to-month, then provide the most recent two (2) months’ proof of receipt to evidence continuance of lease.
• If unable to provide evidence of receipt, the unit will be treated as vacant and subject to the following:
o LTV/CLTV limits: Lesser of 70%, or the LTV/CLTV based upon the DSCR/FICO/Loan balanced matrix
▪ Monthly Gross Rents are determined by using the actual lease amount or estimated market rent from 1007/1025 as follows:
• If using the lower of the actual lease amount or estimated market rent, nothing further is required.
• If using a higher actual lease amount, evidence of 2 months of receipt is required, and the lease amount must be within 120% of the estimated market
rent from 1007/1025. If the actual rent exceeds the estimated market rent by more than 120%, the rents are capped at 120%.
• If using a higher estimated market rent from 1007/1025, it must be within 120% of the lease amount. If the estimated market rent exceeds the lease
amount by more than 120%, the estimated market rent is capped at 120%.

▪ A vacant or unleased property is allowed subject to the following (Exclude Foreign National Borrowers): LTV/CLTV limits: Lesser of 70% or the LTV/CLTV based upon
the DSCR/FICO loan balance matrix
▪ Unit subject to rent control or housing subsidy must utilize current contractual rent to calculate DSCR.

Short-Term Rental Documentation Requirements
Short-Term Rental (e.g. AIRBNB, VRBO, FLIPKEY)
o Short Term Rental Income – Purchase and Refinance transactions
▪ LTV/CLTV Limits:
• Purchase: Lesser than 75%, or the LTV/CLTV based upon the DSCR/FICO/Loan balance matrix.
• Refinance: Lesser than 70%, or the LTV/CLTV based upon the DSCR/FICO/Loan balance matrix.
• See Matrix for Condo Hotel LTV/CLTV Limits.
▪ DSCR Calculation:
• Monthly gross rents based upon a 12-month average to account for seasonality required.
• Gross rents reduced by 20% to reflect extraordinary costs (i.e. advertising, furnishings, cleaning) associated with operating short-term rental property
compared to non-short-term property. If the rental documentation referenced below includes expenses, actual expenses should be compared to the
20% expense factor. If actual expenses are less than 20%, a minimum 20% expense factor is required to be utilized. If actual expense exceeds 20%, the
actual expense factor should be used.
• DSCR Calculation: (Gross Rents * .80) divided by PITIA = DSCR
▪ When short-term income is documented using multiple sources, the lowest source of monthly income is to be utilized for calculating DSCR.
▪ Any of the following methods may be used to determine gross monthly rental income:
• A 1007 or 1025 Comparable Rent Schedule survey prepared by the appraiser reflecting long-term or short-term market rents.
o If long-term rent is utilized, 20% expense factor is not to be applied.
• An alternative market rent analysis similar to FNMA Form 1007/1025 is allowed, subject to the following:
o Analysis must be completed pursuant to the lender’s appraisal management process.
o Must be completed by a licensed appraiser.
o Must include daily rental rate and occupancy percentage.
• The most recent 12-month rental history statement from the 3rd party rental/management service.
o The statement must identify the subject property/unit, rents collected for the previous 12 months, and all vendor management fees. The
rental income will exclude all vendor or management fees.

• The most recent 12-month bank statement from the borrower evidenced short-term rental deposits. Borrower must provide a rental record for the
subject property to support monthly deposits.
• AIRDNA (www.Airdna.co) Rentalizer and Overview report, accessed using the Explore Short-Term Rental Data, must meet the following requirements:
o Rentalizer (Property Earning Potential Report)
▪ Only allowed for a purchase transaction
▪ Gross rents equal the revenue projection from the Property Earning Potential report less the 20% extraordinary expense factor.
▪ Forecast period must cover 12 months and dated 90 days within the Note Date
▪ Maximum occupancy limited to 2 individuals per bedroom
▪ Must have three (3) comparable properties similar in size, room count, amenities, availability, and occupancy.
▪ Market score or Sub-Market score must be 60 or greater as reflected on the Property Earning Potential Report.

Debt Service Coverage Ratio is the Monthly Gross Income divided by the PITIA (or ITIA for interest only loans) of the subject property.
Calculating Real Estate Tax Payment for subject property:
• For purchase and construction-related transactions, the Seller must use a reasonable estimate of the real estate taxes based on the value of the land and the total of all new and existing
improvements.
o State of California exception: Use 1.25% of the purchase price to determine the monthly tax payment.
• For refinance transactions, use the current tax assessment.
Debt Service Coverage Ratio: The Monthly Gross Income divided by the PITIA or ITIA of the subject property.

Lease Requirements

o Unleased Property:
▪ More than 1 of the units within the subject property do not have an existing lease;
o Unleased Property LTV Restrictions if appraisal reflects any unit vacant
▪ Refer to Matrix

FINANCED PROPERTIES

• Unlimited financed properties for Debt Service (DSCR) Qualification.

• Exposure to a single borrower not to exceed $5,000,000 in current unpaid principal balance (UPB) or 10 loans.

LISTING SEASONING

• For all cash-out refinance:
o NO LISTINGS SEASONING CASE BY CASE FLORIDA DSCR MORTGAGE LENDERS – A listing expiration of less than six (6) months is permitted a minimum of 3-year prepayment penalty. If a property is listed for sale, the listing must be canceled prior to the
note date.
o The value will be based on the lesser of the lowest list price or appraised value.
• For Rate and Term refinance, the property needs to be off the market 1 day before taking loan application.

GIFT FUNDS

• Allowed for down payment and closing after minimum 10% borrower’s contribution. Not allow to meet reserve requirements.

ASSET DOCUMENTATION

The following may be used as asset documentation for down payment, closing costs, and reserves. See applicable Loan/LTV matrix for minimum reserve requirement. Asset documentation must
comprise of one (1) month and be dated within 90 days of the note date.
• Account statements (e.g., checking, savings, share, or brokerage accounts)

o Statements must include the following:
▪ Name of financial institution
▪ Reflect borrower as the account holder (Funds held jointly with another individual are considered 100% of the borrower’s funds)
▪ Account number
▪ Statement date
▪ Time period covered by the statement
▪ Available balance in U.S. dollar denomination
o Assets held in foreign accounts must be translated to English and verified in US Dollar equivalency at the current exchange rate via either http://www.xe.com or the Wall Street
Journal conversion table.
• Assets held in in a Trust require the following:
▪ Obtain written documentation (e.g., bank statements) of the value of the trust account from either the trust manager or the trustee, and
▪ Document the conditions under which the borrower has access to the funds
• Accounts verified using a third-party vendor participating in the Fannie Mae Day 1 Certainty® process.
• Verification of Deposit completed by the verifying financial institution (FNMA Form 1006).
• Borrowed funds secured by an asset are an acceptable source of funds for the down payment, closing costs, and reserves, since borrowed funds secured by an asset represent a return of
equity. Assets that may be used to secure funds include automobiles, artwork, collectibles, real estate, or financial assets, such as savings accounts, certificates of deposit, stocks, bonds,
and 401(k) accounts. When qualifying the borrower, monthly payments on loans secured by non-financial assets must be included in the debt-to-income calculation. When loans are
secured by the borrower’s financial assets, monthly payments for the loan do not have to be considered as long-term debt.
• Stocks/Bond/Mutual Funds – 100% of account(s) value may be considered for assets.
• Business funds
o Consumer Purpose Loans: The amount of business assets that may be utilized is limited to the borrower’s ownership percentage in the business.
o Business Purpose Loans:
▪ Assets held in the name of the vested entity: 100% of the assets may be used.
▪ Assets not held in the name of the vested entity: The amount of business assets that may be utilized is limited to the borrower’s ownership percentage in the business.

• Vested retirement account funds – 70% may be considered for closing and/or reserves;
• Cash Value of Life Insurance – 100% of the cash surrender value less any loans may be considered for assets.
• Non-regulated Financial Assets
o Crypto Currency – Bitcoin and Ethereum are eligible sources of funds for the down payment, closing costs and reserves. Crypto is not an eligible liquid asset for asset
utilization/depletion.
▪ Down payment and closing costs: currency must be liquidated and deposited into an established US bank account.
▪ Reserves: Loan file must include a statement meeting the requirements under account statements to document ownership of the crypto holdings. Current valuation, within
30-days of the loan Note date, can only be determined from the Coinbase exchange. 60% of the current valuation will be considered eligible funds.

The following are ineligible assets:
• Non-vested or restricted stock accounts
• Gift of equity
• Sweat equity
• Gift or grant funds which must be repaid
• Down payment assistance program
• Unsecured loans or cash advances
• 529 savings plan
• Funds contributed by a non-borrowing spouse unless documented as gift

PURCHASE

• Assignment of contract or finder’s fees reflected on the purchase contract are eligible, subject to interested party contribution limits.
• Seller as the vested owner on title.
• Buyer’s Real Estate Agent Commission – In response to the NAR Settlement, the following apply:
o Commission paid by the property buyer: Considered a closing cost.
▪ Source of funds must be documented in assets.
▪ If borrowed or financed, the monthly payment must be included in the debt-to-income ratio.
o Commission paid by the property seller:
▪ Not considered an interested party contribution if seller agrees to pay according to the negotiated terms of the purchase contract.

RATE TERM TRANSACTION

▪ Proceeds from the transaction are used to pay off an existing first mortgage loan and any subordinate loan used to acquire the property.
▪ Any subordinate loan not used in the acquisition of the subject property provided one of the following apply;
o Closed end loan, at least 12 months of seasoning has occurred.
o HELOC, at least 12 months of seasoning has occurred and total draws over the past 12 months are less than $2,000. (For business purpose transactions, any
draw over the life of the loan may not have been utilized for personal use. Business purpose transactions will require a draw history schedule, along with a
attestation from the borrower, in the credit file, that none of the advances where used for personal/consumer use).

▪ Buying out a co-owner pursuant to an agreement.
▪ Paying off an installment land contract executed more than 12 months from the loan application date.
▪ Other considerations
o Cash back in an amount not to exceed the lesser of 2% of the new loan amount or $5,000 can be included in the transaction.
o If the subject property was acquired greater than six (6) months, as measured from the property acquisition date to the new note date, the appraised value will
be used to determine LTV. If the property was acquired less than or equal to six (6) months, as measured from the property acquisition date to the new note
date, the lesser of the current appraisal value or previous purchase price plus documented improvements (if any) will be used to determine LTV. The purchase
settlement statement and any invoices for materials/labor will be required.
o Refinance of a previous loan that provided cash-out, as measured from the previous note date to the note date, and is seasoned less than 12 months, will be
considered a cash-out refinance.
o The transaction must be treated as cash-out when the subject property is encumbered by one of the following:
▪ Blanket/Cross-Collateralized loan, or
▪ Loan that allows for Paid in Kind (PIK) interest

CASH OUT 

Cash-Out Seasoning is defined as the length of time the subject property has been owned by the borrower, as measured by the property acquisition date to the date of the new note.

▪ A minimum borrower seasoning of six (6) months is required.
▪ Less than six (6) months seasoning is allowed, the current appraised value maybe used, with the following circumstances:
o Borrower acquired the subject property through an inheritance, or
o Subject property was legally awarded the property through divorce, separation, or dissolution of a domestic partnership
▪ A mortgage secured by a property currently owned free and clear is considered cash-out.
▪ The payoff of delinquent real estate taxes (60 days or more past due) is considered cash-out.
▪ Cash-out can only be for business purposes.
▪ Cash-out eligible to satisfy the reserve requirements.
▪ Loans not eligible for cash-out:
o Investment properties listed for sale in the past six (6) months, unless a three (3) year prepay penalty, per requirements in prepayment penalty guide are
met.
o There has been a prior cash-out transaction within the past six (6) months
o Payoff of a Land Contract/Contract for Deed.
o When proceeds from the loan transaction are used for consumer purposes, i.e., payoff personal debt, personal tax lien(s), personal judgments, personal
collection, or lines of credit secured by the subject property.
o Loans with Power of Attorney.