Agency cash-out refis typically require 12 months of seasoning from the most recent acquisition or refinance. During the seasoning window, cash-out is limited to the recovery of documented capital improvements plus any appreciation supported by trailing performance. After seasoning, cash-out is sized against current appraised value subject to LTV and debt-yield caps.
How the seasoning rule plays out at refinance
The 12-month seasoning rule prevents agencies from financing rapid value extraction immediately after acquisition or recapitalization. The rule is FHFA mission-driven: agencies are not intended to provide capital for short-term value-extraction trades.
Inside the seasoning window: cash-out is typically limited to the recovery of documented capital expenditures (renovation receipts, capex history) plus modest cash flow from documented NOI growth. The lender will not accept appreciation alone as the basis for cash-out inside the seasoning window.
Practical timing: sponsors planning cash-out should track the 12-month seasoning date on their property calendar. Targeting cash-out at 12 months and one day captures the appreciation since acquisition without the seasoning constraint, often producing meaningfully higher proceeds than a 6-month or 9-month attempt.
Sources
- Delegated Underwriting and Servicing (DUS) program disclosures · Fannie Mae · current
- Optigo lending program disclosures · Freddie Mac Multifamily · current
- Conservatorship Scorecards & Multifamily Caps for Fannie Mae and Freddie Mac · Federal Housing Finance Agency · 2026