Fannie Mae has a new rule for cash-out refinances. This is important to know if you have buyers who plan to purchase a property for less than the appraised value and then refinance so they can take cash out based on the appraised value.
Borrowers used to be able to take cash out immediately after purchase (not all lenders allowed it, but Fannie Mae did not object). The new rule is that borrowers must have owned the property for at least 6 months to get any kind of Fannie Mae refinance, and at least 12 months to use the appraised value rather than the purchase price as the basis for the loan-to-value (LTV) calculation.
