The minimum ownership time before new appraised value or refi counts.
A seasoning period is the minimum amount of time a borrower must own a property before a lender will use the new appraised value (rather than the original purchase price) for refinancing. Seasoning rules prevent borrowers from rapidly inflating values through cosmetic changes and immediately cashing out at the new value.
The seasoning period exists because rapid appreciation between purchase and refi is suspicious. A property purchased for $200,000 and appraised at $320,000 three months later might genuinely reflect a great deal — or might reflect an inflated appraisal designed to extract cash. Seasoning rules let the lender verify the new value with real market support: continued ownership at higher rents, sustained operating performance, market appreciation that didn't happen overnight.
Conventional and DSCR cash-out refis typically require 6 months of ownership before using the new appraised value. Before 6 months, the loan is sized on the lesser of appraised value or original purchase price — which usually means cash-out is impossible (the property still appraises near its purchase price, and only the existing loan can be refinanced).
After 12 months, full appraised value is used regardless of purchase price. The 6-to-12 month window is sometimes "delayed financing exception" territory, where specific documentation (original purchase was cash, no other loan was taken, etc.) can allow cash-out at appraised value sooner than 12 months. Rules vary by program and lender.
Bridge and hard money refis typically have no seasoning requirement — they're designed for fast value-add scenarios where the operator wants to refinance immediately after rehab. The trade-off is rate and term — bridge debt costs more than DSCR perm. Many BRRRR operators bridge into perm at the 6-month mark, using bridge for the no-seasoning advantage initially then refinancing into seasoned DSCR.
| Purchase price | $180,000 |
| Rehab investment | $55,000 |
| Post-rehab appraised value | $310,000 |
| Refinance at 3 months (no seasoning) | |
| Loan sized on lesser of appraised / purchase | $180,000 |
| Max 75% LTV × $180k | $135,000 (no cash-out) |
| Refinance at 6 months (seasoned) | |
| Loan sized on appraised value | $310,000 |
| Max 75% LTV × $310k | $232,500 (~$45k cash-out) |
| Bridge refi at 3 months (no seasoning) | |
| Loan sized on appraised value | $310,000 |
| Max 75% LTV × $310k | $232,500 (cash-out possible) |
The minimum ownership time before a lender will use the new appraised value (rather than original purchase price) for refinance sizing. Typically 6 months on cash-out refi.
To prevent rapid appraisal inflation and immediate cash-out extraction. Real value creation through rehab and lease-up takes time; seasoning ensures the new value has market support.
Yes — bridge and hard money refis typically have no seasoning. Some conventional "delayed financing exception" rules also allow cash-out before 6 months under specific circumstances (original purchase was cash, etc.).
Usually no seasoning required — rate-and-term doesn't pull cash out, so the inflation risk doesn't exist. Some programs require 1–3 months minimum.
BRRRR is built around the 6-month seasoning window. Investors buy, rehab, and lease in the first 4–5 months, then refinance at month 6 when seasoning is met and the new appraised value can support cash-out.
Matrix structures bridge loans without seasoning for immediate refinance, then transitions to DSCR perm once the 6-month window is met.
