How Long Do You Have to Wait to Refinance a Home?

Refinancing a home mortgage can offer opportunities to adjust loan terms, lower interest rates, or access home equity. Homeowners often encounter specific waiting periods before they become eligible for a refinance. These timelines are not uniform, varying significantly based on factors such as the initial home purchase date, any prior refinances, an individual’s credit history, and the specific loan program involved.

Waiting Periods Following a Home Purchase

After initially purchasing a home, homeowners face specific timelines before they can refinance, known as seasoning requirements. These periods distinguish between a rate-and-term refinance, which modifies the interest rate or loan duration without disbursing cash, and a cash-out refinance, which allows access to home equity. For a conventional rate-and-term refinance, some lenders may allow refinancing almost immediately after closing, though many typically suggest waiting at least six months.

A conventional cash-out refinance generally requires a longer seasoning period. Fannie Mae and Freddie Mac, which set standards for many conventional loans, require a minimum of 12 months from the note date of the original mortgage before a cash-out refinance can be executed based on the current appraised value. FHA and VA cash-out refinances, along with USDA general refinances, also have specific waiting periods detailed in the “Specific Loan Program Requirements” section.

Waiting Periods After a Prior Refinance

Homeowners who have already refinanced their mortgage also encounter seasoning requirements before they can pursue another refinance. This applies whether they seek a rate-and-term adjustment or a cash-out option. For conventional loans, if the previous refinance was a cash-out, the same 12-month seasoning rule from the note date of the prior mortgage applies for another cash-out refinance. A conventional rate-and-term refinance after a prior refinance may not have a universal waiting period, but lender policies can vary.

FHA Streamline Refinances and VA Interest Rate Reduction Refinance Loans (IRRRLs) have specific waiting periods. VA cash-out refinances following a prior VA loan and USDA refinances also have distinct requirements. These are further detailed in the “Specific Loan Program Requirements” section.

Influence of Credit History on Waiting Periods

Specific adverse credit events significantly impact the waiting periods for mortgage refinancing eligibility. These periods are established to allow borrowers to re-establish a positive credit profile. For a Chapter 7 bankruptcy, the waiting period for an FHA loan is generally two years from the discharge date, though it can be reduced to one year with documented extenuating circumstances. Conventional loans typically require a four-year wait from the discharge or dismissal date, which may be shortened to two years under extenuating circumstances.

A Chapter 13 bankruptcy has different waiting periods. For FHA loans, refinancing may be possible one year after the discharge date, or even during the repayment period with court approval and at least 12 months of on-time payments. Conventional loans typically require a two-year waiting period from the discharge date or four years from the dismissal date. For VA and USDA loans, the waiting period after Chapter 13 bankruptcy can be as short as one year, provided specific conditions like court permission and on-time payments are met.

Foreclosure generally results in a longer waiting period. For FHA loans, a three-year waiting period from the completion date of the foreclosure is typically required. Conventional loans often impose a seven-year waiting period from the foreclosure completion date, which can be reduced to three years if extenuating circumstances are documented. Short sales and deeds-in-lieu of foreclosure typically have shorter waiting periods than full foreclosures, with conventional loans often requiring a four-year wait, reducible to two years with extenuating circumstances. Extenuating circumstances, such as job loss or medical emergencies, are non-recurring events beyond a borrower’s control that led to the financial setback, and they require thorough documentation.

Specific Loan Program Requirements for Waiting Periods

Each loan program has distinct rules governing refinance waiting periods, often differing from general industry standards. FHA loans, insured by the Federal Housing Administration, offer specific refinance options with their own timelines. An FHA Streamline Refinance, designed for those with existing FHA loans, requires a minimum of 210 days to have passed since the closing date of the current FHA loan, along with evidence of six consecutive on-time payments. For an FHA cash-out refinance, homeowners generally need to have owned the property for at least six months, with many FHA guidelines requiring a 12-month period of homeownership and consistent on-time payments.

VA loans, guaranteed by the Department of Veterans Affairs, also have specialized refinancing programs. The VA Interest Rate Reduction Refinance Loan (IRRRL), often called a VA Streamline, requires a waiting period of at least 210 days from the first payment due date of the original VA loan, coupled with six consecutive on-time payments. While the VA does not impose a specific waiting period for a VA cash-out refinance, lenders typically prefer that borrowers have made six to twelve months of payments on their current mortgage. Some sources also indicate a 210-day seasoning period for VA cash-out refinances.

Conventional loans, primarily backed by Fannie Mae and Freddie Mac, generally allow for a rate-and-term refinance with no official waiting period, although individual lenders may impose their own. For a conventional cash-out refinance, the property must be seasoned for at least 12 months from the note date of the prior mortgage or purchase.

USDA loans, aimed at rural properties, typically require a 12-month waiting period from the original loan’s closing date for most refinance options, with the mortgage being current for the last 180 days. USDA Streamlined-Assist refinances specifically require 180 days from the note date of the existing USDA loan and at least six consecutive payments. USDA loans do not offer a cash-out refinance option. Jumbo loans do not have a federally mandated waiting period, allowing refinancing as soon as it is financially sensible; however, lenders often impose their own seasoning requirements, which can be around six months for cash-out options.