If you’re a U.S. homeowner thinking about refinancing your mortgage, you might be wondering: “How long do I have to wait before I can refinance again?” or “What Is the Waiting Period for a Rate-and-Term Refinance?”
This required gap—called the seasoning period—is how long you must wait after your most recent mortgage closing before taking out a new loan.
The waiting period depends on your loan type (Conventional, FHA, VA, or USDA) and the purpose of your refinance.
A rate-and-term refinance replaces your current mortgage with a new one, usually to lower your interest rate, change your loan term, or switch from an adjustable to a fixed rate.
Unlike a cash-out refinance, it doesn’t involve pulling out equity—you’re simply restructuring your existing loan for a better deal.
Example:
- You bought a home in 2022 with a 30-year loan at 6.75%.
- In 2025, rates drop to 5.5%.
- Refinancing could reduce your monthly payment and save thousands in interest over the life of the loan.
Waiting Periods by Loan Type (2025 Updated Guidelines)
Here’s what current U.S. lending rules say about rate-and-term refinance seasoning:
No formal waiting period required.
You can refinance as soon as your previous loan has closed and funded—as long as:
- You’ve made at least one on-time payment, and
- You meet standard credit, income, and equity requirements.
Source: Fannie Mae Selling Guide B2-1.2-03; Freddie Mac Guide 4301.5.
Must wait 210 days from your last closing date, and make at least 6 consecutive on-time payments before applying.
These requirements ensure your current FHA loan is “seasoned” before refinancing again.
Source: HUD 4000.1 – FHA Single-Family Housing Policy Handbook.
3. VA Loans (Veterans & Active-Duty Borrowers)
For the VA IRRRL (Interest Rate Reduction Refinance Loan):
- Wait 210 days from the date of your first payment, and
- Make 6 consecutive monthly payments.
Source: U.S. Department of Veterans Affairs Circular 26-18-13.
Borrowers must make 12 months of on-time payments before refinancing under a USDA program. This helps ensure the borrower demonstrates solid payment history.
Source: USDA Rural Development Direct Loan Servicing Handbook, Chapter 17.
→ Read more: How can I lower my mortgage payment?
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Why Do Waiting Periods Exist?
Lenders and federal agencies set seasoning rules to:
- Prevent loan flipping (refinancing too frequently)
- Promote responsible borrowing behavior
- Ensure the refinance provides a tangible net benefit
- Maintain stability in the housing market
The Consumer Financial Protection Bureau (CFPB) emphasizes that a refinance should genuinely benefit the borrower—not just reset the loan clock.
→ Read more: Does refinancing lower your monthly payment?
Feature | Rate-and-Term Refinance | Cash-Out Refinance |
| Purpose | Lower rate or change term | Pull equity as cash |
| Equity Needed | 3–5% minimum | 20%+ typically required |
| Waiting Period (Conventional) | None | 6 months ownership required |
| FHA/VA/USDA Rules | 210 days + 6 payments (FHA/VA), 12 months (USDA) | Similar or stricter seasoning applies |
| Cash Back to Borrower | Limited to $500 or less | Borrower receives equity funds |
| Interest Rate | Lower | Slightly higher due to risk |
| Best For | Reducing payment, faster payoff | Accessing home equity for projects, debt, or investment |
If you simply want to save on interest or pay off faster, a rate-and-term refinance is your best bet.
If you want cash from your equity, choose a cash-out refinance—but expect stricter guidelines and higher rates.
Key Takeaways for Homeowners
Loan Type | Waiting Period | Payment Requirement |
| Conventional | None required (1 payment recommended) | 1 on-time payment |
| FHA | 210 days | 6 on-time payments |
| VA | 210 days | 6 on-time payments |
| USDA | 12 months | 12 on-time payments |
Always confirm details with your lender, since investor overlays can vary slightly
Why Homeowners Trust Loan Factory
At Loan Factory, refinancing is designed to be simple, fast, and affordable:
- Best Price Guarantee: $1,000 if we can’t beat a competitor’s offer (Terms Apply)
- Zero junk fees
- 240+ lenders including FHA, VA, USDA, and Conventional
- MOSO AI-powered platform for instant approvals
- Trusted guidance from Thuan Nguyen (#1 Loan Officer in the U.S.)
Refinance with Loan Factory and join homeowners lowering their monthly payment. Even better? 90% of our refinances have no closing costs for qualified borrowers. Switch to a lower rate or shorten to a 20-year term and keep more cash each month. Get your custom quote in minutes www.LoanFactory.com/quote
Apply online: www.LoanFactory.com/apply
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