Effective April 1, 2023
On February 1,2023, Fannie Mae released Announcement SEL-2023-01 which included a new seasoning requirement for cash-out refinances. On Q Home Loans will require that all loans delivered with a Note date on or after 4/1/2023 meets the new cash-out guidelines.
Fannie Mae’s eligibility policy requires that any existing first mortgage being paid off through the transaction be at least 12 months old as measured from the note date of the existing loan to the note date of the new loan.
This change is in addition to the existing requirement that at least one borrower be on title to the subject property for at least six months prior to the disbursement date of the new loan, unless subject to one of the ownership exceptions permitted in the Selling Guide.
The Desktop Underwriter® (DU®) message issued on cash-out refinance loan casefiles will be updated in a future release to reflect the updated requirement.