The FHA issued a mortgagee letter back in 2011 updating its policies for minimum wait times or seasoning period for borrowers to refinance after the original purchase. The minimum wait time may vary depending on the lender, the type of refinance loan you want to apply for, and other factors. For example, a borrower applying for FHA Streamline Refinance Loans, according to FHA Mortgagee Letter 2011-11, is subject to the following requirements:
– The mortgagor must have made at least six payments on the FHA- insured mortgage that is being refinanced, and
– At least six full months must have passed since the first payment due date of the refinanced mortgage, and
– At least 210 days have passed from the closing date of the mortgage being refinanced.
To see how this works, the FHA official site provides an example. If a borrower’s loan has an FHA case number on a loan closed on or before December 1, “…and if mortgagor’s first payment on that mortgage was due on January 1, the mortgagee may request assignment of an FHA case number for the refinancing mortgage no earlier than July 1.”
In some cases, the FHA requires a borrower to also have an “acceptable payment history”. This is true in the case of FHA cash-out refinancing loans and your payment record will be examined along with the length of time you have had the loan for a cash out refi application.
Again, these are FHA loan minimums–a lender may have longer wait periods required depending on a variety of factors. It’s best to discuss your specific needs with a loan officer to determine what the waiting period might be in your individual circumstances.
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