Cash-out seasoning

Seasoning rules exist to prevent quick flips and to make sure the value is established. Requirements differ by loan program and investor, and they may be measured from the purchase date, the current note date, or the number of payments made. Some non-QM and DSCR programs have shorter seasoning than agency loans.

Texas adds its own timing rules for homestead cash-out. A Texas home equity loan generally cannot be closed within a year of a prior one on the same home, and there are required notice and waiting periods before closing. Ask for the seasoning date early so you can plan.