In Bulletin No. 2022-25, issued on December 7, 2022 (Bulletin No. 2022-25), Freddie Mac announced a new seasoning requirement for cash-out refinances used to pay off first-lien mortgages.  This new, additional seasoning requirement looks to the date of the loan being refinanced to establish eligibility.  The updated guideline requires that the first-lien mortgage being refinanced (as part of a cash-out refinance) be seasoned for at least 12 months, as documented by the credit report or title commitment.


This new seasoning requirement does not apply:


  • to Special purpose cash-out refinance mortgages that meet the requirements of Section 4301.6 of the Selling Guide (i.e., mortgages used to buy out a co-owner’s equity in the property), or
  • when the first-lien mortgage being refinanced is a Home Equity Line of Credit.


Full Memorandum