Is there a seasoning requirement with fannie mae on a no cash out refinance when the refinance is paying off a commercial note?

I am not exactly what you are asking as Fannie Mae does not back loans against commercial properties. Therefore if you are trying to pay off a commercial note, it would be against a commercial property and not eligible for conventional financing. If you are taking money from a residential property to pay off a commercial note on another property, then it would be cash out and you would be subject to seasoning and other requirements. Please call or email me and we can talk about this in further detail. I am in Salt Lake. I look forward to hearing from you.

Linda, I assume you are thinking about taking a cash out loan on a residence and paying off a commercial loan. I am not sure what you mean by seasoning. After you receive the cash from the cash out loan you can pay off the commercial loan (unless there is a pre-payment on the commercial loan). There might be some seasoning requirements on reserve funds but not more than 60 days. Call me and we can discuss further. I'm all about information without obligation. Linda Miller - 801.550.1222. linda@lindamillergroup.com

I agree with Jason's & Linda's comments. I think the confusion here is what you mean by seasoning and the relationship between the commercial note and Fannie Mae. So, I'm going to clarify a couple points which might help you in the questions you ask. "Seasoning" is related to how long you've owned the property or the assets (for cash reserves to qualify). "Rescission" is the waiting period after closing before funds can be released to you. Having said that, Fannie Mae has no specific seasoning requirement for the subject property on a Rate & Term/No Cash Out transaction. Rescission periods do not apply to investment properties. If you are refinancing one property to pay off a loan on another property, then it will generally be "cash out." It sounds like you're describing a cash out transaction on a residential property (Fannie Mae is for residential properties) in order to payoff a commercial loan on a different property. Seasoning restrictions may apply on the "cash out" residential loan, if you've owned it for less than 1 year. A rescission period may apply here if you are getting your financing against a primary residence, but not if it is against another investment property... In the event you obtained a residential property that was zoned commercial with a commercial loan, then you should be okay with a No Cash Out transaction, but you'll likely have to explain the circumstances and usage of the property to get the Fannie Mae loan. Hope that helps.

No... the only time the lender cares about what our doing with the cash out is if your paying off debt to qualify for the loan. Example: Your DTI exceeds maximum standards, so you agree to close Credit Card accounts to qualify. other wise, there is no seasoning requirements.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Need more information to answer...as most are a little confused about how to really answer but all gave their best advice with what they had to work with