This is a YouTube video titled "Delayed Financing, updated Rule #homeloans #investmentproperty #homebuyer" containing an explanation about updated Fannie Mae rules regarding cash-out refinancing timelines for investment properties, recorded on May 26, 2023. The content is a single-speaker informational talk focused on real estate financing regulations.
Let's say you purchase a property that needs a little work for about $100,000. You fix it up. Now it's worth $200,000 and with normal cash out refi limits you can go up to 75 or 80% of the value. So that'd be 150160 grand in this example. However, the rule used to be you had to wait six months before you could pull out above and beyond your initial investment. But Fannie Mae just extended that to 12 month waiting period. So if you want to pull out anything above that $100,000 you originally bought the house for, you have to wait 12 months from the day you purchased it to get that. This is an anti money laundering rule, however, you can pull your original 100,000 DOL dollars out. You will have to source where those funds came from, but this is an important thing to know if you're buying investment properties.
