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VA Cash-Out Seasoning Requirement
Question:
What is the seasoning requirement when doing a VA Cash-Out, and the present loan is not a VA loan?
Answer:
VA does not require seasoning on a VA Cash-Out refinance where the loan being refinanced is not a VA loan. However, most lenders sell these loans to Ginnie Mae, and they require seasoning for any VA Cash-out refinance regardless of the loan type that was refinanced.
Ginnie Mae Seasoning uses the note date as your benchmark for measuring the seasoning.
The note date of the new refinance must be on or after the later of:
• 210 days after the 1st payment due date AND
• 6 monthly payments have been made.
There are lenders who do not sell to GNMA and will not require seasoning, but this is rare. If you have a loan that needs this exception to the GNMA overlay, we recommend that you discuss this issue with your lender.