What seasoning period is required to use the new appraised value for a cash out DSCR loan?

The seasoning period required to use the new appraised value for a cash out DSCR loan generally ranges from 6 months to 12 months ownership, depending on the lender. Most lenders require at least 6 months of ownership before allowing the new appraised value to be used for loan-to-value (LTV) calculations. Some lenders require up to 12 months seasoning, especially for cash out transactions. Exceptions often exist for inherited or legally awarded properties, which may allow 0 months seasoning.

Here is a summary of seasoning requirements by lender for cash out DSCR loans:

Lender	Seasoning Requirement to Use New Appraised Value for Cash Out DSCR Loan	Notes
A&D Mortgage	> 12 months ownership required; ≤ 12 months use lesser of appraised or purchase price + improvements	6 months minimum seasoning for existing first mortgage payoff; exceptions for inheritance/legal award
Angel Oak	6 months seasoning required	Applies to Investor Cash Flow program
Arc Home	6 months ownership required	Ownership seasoning includes majority-owned entities or trusts
Champions Funding	Minimum 6 months seasoning; 6-12 months with appraisal justification	Delayed financing allowed within 6 months if purchased with cash
Change Wholesale	> 12 months ownership required; < 12 months use lesser of purchase price + improvements	< 6 months seasoning generally not allowed except inheritance/legal award
Deephaven	Minimum 6 months ownership required	Additional appraisal review for 6-12 months ownership
FundLoans	12 months seasoning for Spectrum+; 12 months for refinance in Spectrum No Ratio	No explicit seasoning for appraised value use in Spectrum No Ratio
Loan Stream	Minimum 6 months ownership required	Applies to DSCR programs
Newfi Lending	No specific seasoning requirement	Sequoia DSCR program allows use of new appraised value regardless of seasoning
NQM Funding	Minimum 6 months seasoning generally required	Applies to DSCR programs

If you want, I can provide more detailed seasoning rules or exceptions for any specific lender or program. Would you like that?