The Quick Read: Usually 12 months, but only if you are paying off an existing first mortgage. Fannie Mae runs two clocks, and your loan has to pass both. You need at least 6 months on title, and the loan you are paying off must be at least 12 months old, counted note date to note date. Inheritance, a legal award and delayed financing can change the math.
What Does “Seasoning” Mean Here?
Seasoning is the waiting period a lender wants before it will let you pull cash out. It exists so that a quick purchase, a quick appraisal bump and a quick cash-out cannot happen back to back.
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: 7.40% as of October 15, 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.
Two terms come up constantly. The note date is the date you signed the promissory note for a loan. The disbursement date is the date the new loan’s money is actually paid out. Both matter, because the clocks end on those dates, not on the day you apply.
Across the wholesale programs I place conventional files with, the seasoning question comes up on almost every cash-out conversation. Borrowers usually know about one clock. Few know there are two.
What Are the Two Clocks?
Fannie Mae’s Selling Guide section B2-1.3-03 sets both tests. Here they are side by side.
| Factor | Title clock | Loan-age clock |
|---|---|---|
| What it measures | Time you have owned the home | Age of the mortgage being paid off |
| Length | 6 months | 12 months |
| Starts | Date you took title | Note date of the existing loan |
| Ends | New loan’s disbursement date | Note date of the new loan |
| Applies when | Almost always | Only if a first mortgage is paid off |
The loan-age clock is the one that usually decides your date. If you bought with a mortgage, the 6 months on title pass long before the 12-month note age does. So a buyer who financed the purchase generally waits for that 12-month mark.
Many websites flatten this to “six months.” That is only half the rule. The 12-month requirement replaced an older 6-month loan-age test, and the six-month title requirement stayed in place.
Which Clock Binds You?
Ask one question: do you have a first mortgage on this home today?
- Yes, and you financed the purchase. The 12-month loan-age clock almost always binds you.
- Yes, and you refinanced recently. The refinance created a new note date, so the loan-age clock restarted. A recent rate-and-term refinance can push your cash-out date out.
- No mortgage at all (you own it free and clear). A new loan on a property with no lien still counts as cash-out. The 6-month title clock applies.
- You bought with cash recently. Delayed financing may let you skip the wait. More on that below.
One more point. Your equity does not shorten either clock. A big down payment, a bargain price or a renovation does not buy you an earlier date.
How Do You Count Your Dates?
Pull the paperwork first. Your deed or closing statement shows when you took title. Your original note and your settlement statement show the note date of your current loan.
Here are four scenarios, described in months rather than calendar dates.
Financed purchase. Say you bought a home with a mortgage and moved in. At month 8, you have passed the title clock but not the loan-age clock. At month 12 or later, measured note date to the new note date, you pass both. Count to the new loan’s note date, not to today.
Recent rate-and-term refinance. Picture a homeowner who owned for years, then refinanced into a new first mortgage a few months ago. The title clock is long done. But the loan being paid off is only a few months old, so the loan-age clock fails until that new loan turns 12 months.
Free and clear. Consider a borrower who inherited nothing and paid cash years ago. Title is well past 6 months and no mortgage exists to season. The title clock is the only test.
Time in a trust. Time held in a revocable living trust can count toward the title clock, if you are the trust’s primary beneficiary, per the same Selling Guide section.
Note that the count runs to disbursement. A closing that slips across a month boundary can change the answer. Give yourself margin.
Which Exceptions Waive Which Clock?
Exceptions are narrower than most websites suggest. Here is the map.
| Situation | Title clock | Loan-age clock |
|---|---|---|
| Inherited the property | Waived | Not triggered if no loan is paid off |
| Awarded in divorce or legal proceeding | Waived | Depends on the loan being paid off |
| Cash purchase, delayed financing | Replaced by a purchase-date test | Not triggered |
| Buying out a co-owner or paying off a subordinate lien | Still applies | May be exempt |
The inheritance and legal-award exceptions are in the Selling Guide, which says the lender must document that the borrower inherited the property or was legally awarded it through divorce, separation or dissolution of a domestic partnership. The co-owner and subordinate-lien exemptions to the loan-age clock appear in secondary sources. Ask your loan officer to confirm them against the live Selling Guide before you count on them.
What Is Delayed Financing?
Delayed financing is the one real shortcut. It is for people who bought a home with cash and want to get that cash back out.
Fannie Mae’s selling FAQ lays out the shape of it. You must have bought within the past 6 months, measured from the purchase date to the new loan’s disbursement date. The purchase must have been arm’s-length, meaning a normal sale between unrelated parties. Non-arm’s-length purchases are not allowed.
Here is the part people miss. Delayed financing is still a cash-out refinance. It carries cash-out pricing. And the loan amount is capped at your documented initial investment plus financed closing costs, prepaid fees and points, subject to the maximum LTV ratios based on current appraised value. It returns the cash you put in. It does not unlock extra equity.
You will also need to document where the purchase money came from. A settlement statement showing no financing was used is part of that proof.
Be careful with hard-money or bridge-loan purchases. Those are first mortgages. The loan-age clock applies to them, and delayed financing generally fails because the purchase was not made with cash. Confirm with your loan officer how funds you borrowed for the purchase are treated, since agencies and lenders handle that differently.
What Trips People Up?
Late payments. Missing a payment during the window does more than cost you credit. It can complicate the file and your timing. Keep every payment clean.
A listed home. If the property was listed for sale, it must be off the market on or before the new loan’s disbursement date.
Switching lenders. A different lender does not reset or shorten Fannie Mae’s clocks. The rules attach to the loan and the property, not the company.
Delinquent taxes. A loan is ineligible if it finances real estate taxes more than 60 days delinquent and no escrow account is set up, unless law prohibits requiring escrow.
Reserves. On automated underwriting files with a debt-to-income ratio above 45%, the guide calls for six months of reserves. Reserves are money left in the bank after closing, counted in months of housing payments.
Assuming your lender equals Fannie Mae. Individual lenders can add stricter rules, called overlays. That is why one website says one thing and your lender says another.
What Happens After You Pass Seasoning?
Passing seasoning gets you in the door. It does not set your cash. Your current appraised value drives the test. Across the wholesale programs I work with, a conventional cash-out refinance on a one-unit principal residence reaches 80% loan-to-value. Two- to four-unit principal residences, second homes and investment property reach 75%. Subject to lender guidelines and full file review, that gap between your balance and the percentage cap is roughly the cash you can take.
Credit and ratios matter too. The wholesale conventional programs start at a 620 decision score, and the automated finding governs most files, with a total ratio ceiling of 50%. For the exact limits by occupancy, the live Fannie Mae Eligibility Matrix is the place to check.
There is also a wholesale lane that reaches 89.99% LTV with no mortgage insurance. It needs a 680 score and a 50% ratio on a thirty-year fixed, primary residence, conforming balance. It has its own six months of seasoning. In Texas, a cash-out on the homestead is capped by the state constitution at the agency figure, and that wholesale lane is not written there. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
What If You Are Inside the Window?
You have options while you wait.
A limited cash-out refinance, also called a rate-and-term refinance, pays off your existing first mortgage and closing costs with only incidental cash back. On a one-unit principal residence it reaches 95% LTV, with mortgage insurance above 80%. Treat that as a question for your loan officer, not a promise. Lendmire’s piece Limited Cash-Out Refinance for Fannie Mae Loans: What It Allows covers it in detail. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Another option is a second lien on top of your current mortgage, if the loan you have is worth keeping. And sometimes the answer is simply to wait a few more weeks and apply once both clocks are clearly past.
Time your application against the disbursement date, not the application date. Then confirm your numbers with a broker before you order an appraisal.
What About FHA, VA and Freddie Mac?
FHA and VA have their own seasoning rules, and this article does not cover them. Ask about them if you hold one of those loans.
Freddie Mac has a similar approach. Its Seller/Servicer Guide section 4301.5 covers a six-month ownership requirement with an exceptions table that starts with inheritance or a legal award. The two companies differ in rule numbers, effective dates and some exceptions, so they are not identical.
Investor-owned properties and LLC title raise their own questions. If that is your situation, Lendmire’s piece Fannie Mae Investment Property Cash Out Refinance Seasoning is the better read. For an owner-occupant, one line is enough: occupancy decides the leverage.
Key Terms Defined
Seasoning: the waiting period a lender requires before a cash-out refinance can close.
Note date: the date you signed the promissory note for a loan.
Disbursement date: the date the new loan’s funds are paid out.
Delayed financing: a cash-out refinance for people who recently bought with cash, capped at what they documented putting in.
Reserves: money left in the bank after closing, counted in months of housing payments.
Loan-to-value (LTV): your loan balance divided by your home’s appraised value.
Is Cash-Out Always the Right Move?
Cash-out replaces your current loan with a larger one. The CFPB notes that the monthly payment may rise, the interest rate and loan terms change, and the payoff can stretch longer. It also notes that paying non-mortgage debts with mortgage debt can raise foreclosure risk, since those debts become secured by your home.
That is the real decision. Seasoning tells you when you can. It does not tell you whether you should. Compare the total cost of the new loan against keeping the one you have. If you are weighing programs, Lendmire’s cash-out refinance programs page lays out the options.
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. Lendmire is a mortgage broker, so the lender reviews your file and decides, subject to lender guidelines. Nothing here is a commitment to lend.
Frequently Asked Questions
Does the six-month clock start when I apply?
No. It ends on the new loan’s disbursement date, not your application date. Count from the day you took title to the day the new loan’s money is paid out. A closing that slips can change your answer, so build in a cushion.
Can I skip the 12 months if I added a lot of equity?
No. A large down payment, a bargain price or a renovation does not shorten either clock. Equity affects how much cash you can take out, not when you can take it. The exceptions are specific: inheritance, a legal award, and delayed financing for a recent cash purchase.
I bought with cash last month. Can I get my money back out?
Possibly, through delayed financing. You must be within 6 months of the purchase, the sale must have been arm’s-length, and you must document that no financing was used. The loan is capped at what you put in plus certain costs, and it is priced as cash-out. Confirm the details with a loan officer.
Does a recent refinance restart the clock?
Yes, for the loan-age test. A refinance creates a new note, and that note must be 12 months old before it can be paid off in a Fannie Mae cash-out. Your time on title keeps running, so only the loan-age clock resets.
If I am too early, is there another option?
Often, yes. A limited cash-out refinance may fit if your goal is a different loan rather than cash. Check with your loan officer whether any minimum applies, since lender overlays can differ. A second lien is another route if your current loan is worth keeping.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Lendmire arranges FHA, VA, conventional and jumbo purchase and refinance loans through wholesale lenders; every file is underwritten by the lender under the applicable program guidelines. 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. Fannie Mae Selling Guide B2-1.3-03, Cash-Out Refinance Transactions
2. Fannie Mae Selling FAQ (delayed financing)
3. Fannie Mae Eligibility Matrix
4. Freddie Mac Seller/Servicer Guide 4301.5
5. CFPB, Using Home Equity guide
This article is part of Lendmire’s cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How a Lender Disburses Cash on a Conventional Cash-Out Refinance · Limited Cash-Out Refinance for Fannie Mae Loans: What It Allows · How Much Cash You Net on a Conventional Cash-Out Refinance
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.