How to Use a No-Seasoned Refinance

To use a no-seasoned refinance in your business, you must first understand what a no-seasoned refinance is.


There are two parts to a no-seasoned refinance:

  • Seasoning
  • Refinance


In the world of mortgages, seasoning is how long you have owned a property and paid the loan. For example: If you have owned a property for 12 months, it would be said that you have 12 months of seasoning. If you have owned a property for five months, again, it would be said that you have five months of seasoning. However, if you have less than three months of ownership, the seasoning would be called “no-seasoning.”


A refinance is, well, a refinance. It means that you had financing on a property and then obtained new financing to pay off the old financing. This refinancing can be done for a couple of reasons:

  • To pull out cash from a transaction, assuming you have enough equity in the property
  • Obtaining a better interest rate than you previously had


A great benefit of a no-seasoned refinance is that you can quickly refinance a property to pay off your old loan, potentially getting some money out and/or getting a better interest rate than you originally had. For example: You obtain a house with a hard money lender who is charging 15% interest rate. You then quickly turn around and refinance the loan, paying off the hard money lender and getting a new, better rate of 4.25%.


If used correctly, a no-seasoned refinance can help you buy and hold properties to rent with little to no money from your own pocket.