The Quick Read: Yes. Freddie Mac sets two waiting-period tests for a cash-out refinance, and you generally have to pass both. The first loan you are paying off must be at least 12 months old, measured from its note date to the new loan’s note date. At least one borrower must also have been on title for six months. Passing one clock while failing the other still fails the file.
“Seasoning” is just the waiting period a lender wants before you pull cash out. It is not a credit score test. It is a calendar test.
Cash-out refinance estimate
The starting figures are an example value with a balance and a cash request in proportion. Replace them with yours.
Editable benchmark: 7.32% as of October 22, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a cash-out refinance quote.
Illustrative starting assumptions: a $350,000 home value, a $193,000 current balance, the agency cap on a one-unit principal residence, a thirty-year term at the current Freddie Mac benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a cash-out refinance quote; a cash-out loan is priced by the lender at lock. The cash available is the loan the program cap allows less the balances paid off, before closing costs, which are not included. The HELOC line is the program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages.
Here is how the two clocks work, where the exceptions are, and what to do if you are short.
What Are the Two Clocks?
Freddie Mac’s rule has two separate tests. One looks at the age of your current first mortgage. The other looks at how long you have owned the home.
| Factor | Loan-age clock | Title clock |
|---|---|---|
| What it measures | Age of the first mortgage | Time on the deed |
| Length | 12 months | 6 months |
| Starts | Old loan’s note date | Date a borrower took title |
| Ends | New loan’s note date | New loan’s note date |
| Proof | Credit report or title commitment | Deed and title commitment |
The Freddie Mac Single-Family Seller/Servicer Guide, Section 4301.5 states both tests. Freddie Mac’s cash-out refinance product page repeats the 12-month note-date rule.
The 12-month loan-age test is the newer one. It applies to loans with settlement dates on or after March 7, 2023, per a compliance vendor’s summary of Freddie Mac’s bulletin on the change. Check the current version of Section 4301.5 before you rely on any detail, because the Guide updates by effective date.
How Do You Count the 12 Months?
You count calendar time from the old note date to the new note date. It is not 12 payments, and it is not 12 months from the day you apply.
The note date is the day you signed the promissory note on your current loan. Find it on your closing documents from that loan. Add 12 months. That is your earliest eligible date.
Picture a homeowner who closed a refinance a little under a year ago and has made every payment on time. A perfect payment history does not shorten the clock. The loan is 11 months old, so cash-out has to wait. Strong credit and strong income cannot offset a missed seasoning test either.
Freddie Mac measures to the note date. Fannie Mae measures its six-month title test to the disbursement date, which comes later. That is one small way the two agencies differ.
How Does the Six-Month Title Test Work?
At least one borrower on the new loan must have been on title for six months before the note date. Look at the date on your deed. That is where the title clock starts.
The Guide lists variations. Time in a revocable trust or an LLC may count under certain conditions, and leasehold and co-op properties have their own handling. Because those variations carry conditions, ask your loan officer to confirm them against the live Guide text before you assume they apply to you.
Occupancy matters too. On a primary residence, all borrowers must occupy the property.
A quick note on the other direction: if you own a second home or a rental, occupancy changes the leverage the program allows. Primary residences get the best terms.
Which Situation Are You In?
Most borrowers fall into one of a handful of situations. Find yours.
| Your situation | What generally applies |
|---|---|
| Financed purchase under 12 months ago | Wait for the 12-month mark |
| Refinanced under 12 months ago | Wait; the new note restarts the loan-age clock |
| Long-time owner, loan over 12 months old | Both tests are likely met |
| Paying off a HELOC as the first lien | 12-month rule does not apply |
| Buying out a co-owner | Special purpose cash-out rules apply |
| Inherited the home | Generally no title seasoning |
| Paid cash for the home | Delayed financing may apply |
Two details in that table deserve attention. First, a cash-out refinance creates a brand-new first-lien note. If you take cash out today and want another cash-out later, the new note has to be 12 months old before it can be paid off.
Second, the HELOC exception only works when the HELOC is the first lien. A second lien sitting behind your first mortgage is a different animal.
What Are the Exceptions?
The 12-month rule has exceptions. The title rule has its own set. Here is each one in plain words.
Special purpose cash-out. Buying out a co-owner, for example in a divorce, falls under Section 4301.6 of the Guide. Special requirements apply, so expect extra paperwork.
HELOC as the first lien. When the loan being paid off is a home equity line that sits in first position, the 12-month rule is waived, per the same compliance summary.
Inheritance. Freddie Mac’s product page says there is no seasoning requirement for inherited properties. That page is older, so confirm against the live Guide. Fannie Mae’s Selling Guide also waives its waiting period for inherited homes and for homes legally awarded in a divorce, separation, or dissolution of a domestic partnership.
Delayed financing. If you bought the home with cash, you may be able to borrow against it before six months pass. The Guide requires that the purchase Settlement or Closing Disclosure show no financing secured by the property was used to buy it. The new loan is generally capped at your documented purchase investment plus certain costs, not the full appraised value. If you borrowed the purchase funds elsewhere, additional cash-out is permitted only when those borrowed funds are paid in full. A related Lendmire piece covers Freddie Mac cash-out seasoning for a rental bought with cash, if you want the cash-buyer mechanics in more depth.
A word of caution: some competitor-style summaries list further exceptions, such as construction-to-permanent loans. Treat any exception not in the Guide text as unconfirmed until your loan officer verifies it.
Can a Lender Waive the Rule?
No. Lenders that sell loans to Freddie Mac must follow the Guide. A lender can add stricter in-house rules, often called overlays, but it cannot loosen the rule for a Freddie Mac loan.
Across the wholesale programs Lendmire places files with, the practical effect is simple. If the dates fail on paper, no amount of explanation fixes the file. Files that clear the dates move forward to the real underwriting questions: credit, ratios, and appraised value.
If you are curious how the other agency handles the same issue, Lendmire’s piece on the Fannie Mae cash-out seasoning period walks through it. The two are close, not identical.
What Else Does a Cash-Out Need to Clear?
Passing seasoning gets you to the next set of questions. Here is where the numbers sit in the conventional programs Lendmire arranges through wholesale lenders, subject to lender guidelines and full file review.
- Leverage: a conventional cash-out reaches 80% loan-to-value (LTV, the loan as a share of the appraised value) on a one-unit primary residence. Two- to four-unit primary residences, second homes, and investment property top out at 75%.
- Credit: the wholesale conventional programs start at a 620 decision score, and the automated finding governs most files, with a total debt-to-income ceiling of 50%.
- A wholesale lane to 89.99% LTV: on a thirty-year fixed primary residence with a conforming balance, one lane reaches 89.99% LTV with no mortgage insurance at a 680 score and a 50% ratio. It carries its own six months of seasoning. In Texas, a homestead cash-out is capped by the state constitution at the agency figure, so that lane is not written there.
If you want to see how these programs fit together, Lendmire’s cash-out refinance programs page lays out the options.
A cash-out is also a new first mortgage. It carries its own closing costs, which the CFPB’s Loan Estimate explainer describes as the upfront charges to get your loan and transfer ownership. You can pay them out of pocket, deduct them from your proceeds, or finance them. The last two shrink your net cash or grow your balance. Freddie Mac also applies credit fees to cash-out loans, and the cost depends on LTV and credit profile.
What Are Your Options If You Are Too Early?
You have four realistic paths. None involves arguing with the calendar.
| Option | How it works | Tradeoff |
|---|---|---|
| Wait | Reach the 12-month and six-month marks | Time |
| Home equity line or loan | Adds a second lien; leaves your first mortgage alone | A second payment |
| Check an exception | Inheritance, co-owner buyout, HELOC first lien | Extra documentation |
| Rate-and-term refinance | Pays off the loan with only incidental cash back | No meaningful cash out |
A second lien does not replace your first mortgage, so it does not trip the first-lien seasoning test the same way. The tradeoff is carrying two payments instead of one.
Before you apply, do a two-minute check. Find the old note date on your closing documents. Add 12 months. Then check your deed date and add six months. The later of those two dates is your earliest cash-out date.
Key Terms Defined
Seasoning: the waiting period a lender requires before you can refinance or pull cash out.
Note date: the day you signed the promissory note for a loan, which is the start of the 12-month clock.
Title: legal ownership of the home, shown on your deed.
Cash-out refinance: a new first mortgage larger than your current payoff, with the difference paid to you.
Overlay: a lender’s own rule that is stricter than the agency rule.
Delayed financing: a cash-out option for people who bought the home with cash.
Frequently Asked Questions
Does Freddie Mac require six months or 12 months?
Both, in most cases. Twelve months applies to the age of the first mortgage you are paying off. Six months applies to how long at least one borrower has been on title. The later date controls.
Does paying on time shorten the wait?
No. The 12-month test counts calendar time from note date to note date. Payment history matters for underwriting, but it cannot shorten a seasoning period.
Do I need to wait if I inherited the house?
Generally not. Freddie Mac’s product page states no seasoning requirement applies to inherited properties, and Fannie Mae waives its waiting period for inheritance and legal awards. Confirm the current Guide text with your loan officer.
What if I bought the home with cash?
Delayed financing may let you borrow before six months pass. The new loan is generally limited to your documented purchase investment plus certain costs, so you will not get cash against the full appraised value.
Can I do a second cash-out right after the first?
Not right away. A cash-out refinance creates a new first-lien note, and that note must be 12 months old before another cash-out can pay it off.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches. Reach the team at 828-256-2183. Program figures are subject to lender guidelines and full file review, and nothing here is a commitment to lend.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving homeowners and home buyers in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For the program’s current guidelines, see conventional loan programs.
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References
1. Freddie Mac Single-Family Seller/Servicer Guide, Section 4301.5
2. Freddie Mac Cash-out Refinance product page
3. Fannie Mae Selling Guide B2-1.3-03, Cash-Out Refinance Transactions
4. CFPB Loan Estimate explainer
This article is part of Lendmire’s cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Does a Fannie Mae No Cash Out Refinance Allow Any Cash Back? · How Much a Conventional Refinance Saves a Move-Up Buyer · Refinance vs PMI Cancellation on a 2-4 Unit Primary Home
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.