Refinance A Home That Was Listed For Sale
Your listing history sets the rules, and the date you have to be off the market is not the same on every program.
An FHA no cash-out refinance can be allowed while the property is still listed for sale.
Every other route wants the listing down first, and the deadline differs by program.
- An FHA cash-out refinance requires the listing to have expired or been withdrawn before your application date.
- An FHA 203k refinance requires the subject property off the market on or before the application date.
- Fannie Mae standard and high balance refinances allow the property to come off the market up to the disbursement date of the new loan.
- USDA rate and term refinances and USDA streamlined refinances require the property off the market before the application date.
- Multiple listings within 12 months of the note date are ineligible.
- Home equity loans and second lien home equity lines are ineligible when the property was listed within the prior six months.
An FHA no cash-out refinance can proceed while listed
A letter of explanation and a canceled listing clear it
At least one program allows rate and term and cash-out
Written intent to occupy covers primary residence refinances
Some jumbo programs will not refinance a listed home
A home equity line exists for homes currently listed
What is the Saxton Listed Property Refinance?
A standard refinance on a home you listed for sale, run through the listing rules that apply to it
The Saxton Listed Property Refinance is not a separate loan. It is how a refinance gets handled when the home is on the market or was recently on the market. The loan itself is an ordinary rate and term or cash-out refinance. What changes is the listing gate: whether the property is allowed to still be listed, and the date by which it has to be off.
You listed the house. It sat, the offer you wanted did not come, and you took the sign down or are about to. Now the plan is to stay and refinance instead. That history follows the file. On an FHA no cash-out refinance, at least one program allows the transaction while the property is listed for sale. Most other routes want the listing gone first.
It does not work for everyone. Multiple listings within 12 months of the note date are ineligible. Some jumbo programs treat a rate and term refinance as ineligible when the property is listed as of the application date. Home equity loans and second lien lines are closed for six months from application. One home equity line program is built for currently listed homes, but it is not offered in Texas and not for loan amounts greater than $400,000.
Why choose the Saxton Listed Property Refinance?
This is for the owner who tried to sell, could not, and now wants to keep the house and refinance it.
Two Different Deadlines Apply
The date you must be off the market changes with the program. An FHA cash-out refinance requires the listing to have expired or been withdrawn before your application date. An FHA 203k refinance uses the application date as well. USDA rate and term and streamlined refinances use the application date. Fannie Mae standard and high balance refinances allow it up to the disbursement date.
Still Listed Is Sometimes Fine
On an FHA no cash-out refinance, at least one program allows the transaction while the property is listed for sale. The property and the borrower still have to be eligible and qualified for the refinance. This is the one route that does not force you to pull the listing before you start the loan.
Jumbo Rules Are Stricter
Some jumbo programs are the tightest of the group. A rate and term refinance is ineligible when the property is listed for sale as of the refinance application date. A cash-out refinance is ineligible when the property was listed at any time within the six months before the application date. A recent listing can close jumbo off even after the sign is gone.
Two Listings Stop It
One listing is a condition you can cure. Two is a different answer. Multiple listings within 12 months of the note date are ineligible, and that is a stop rather than a document request. If you listed, pulled it, relisted, and pulled it again inside a year, say so at the start. It changes which programs are open.
The Paperwork Is Short
Some programs handle a recent listing with documents instead of a decline. Where the property was listed by you within the past six months from the note date, it may not be currently listed at the time of loan application, and the file will require a borrower letter of explanation and a listing cancellation. Two items, both easy to produce.
Second Liens Say No
Home equity is where the answer turns hard. Home equity loans are ineligible when the property was listed for sale within six months of the application date. Second lien home equity lines use the same six month window from application. If the sign came down last month, a second lien is not your route.
Hear From Homeowners Like You
Frequently Asked Questions
Common questions from owners refinancing a home that was on the market.
Sometimes. On an FHA no cash-out refinance, at least one program allows the transaction while the property is listed for sale, provided the property and the borrower are eligible and qualified for the refinance. Most other routes do not. Fannie Mae standard and high balance refinances require that the property not be currently listed, and USDA refinances require it off the market before the application date.
It depends on the program. FHA cash-out requires the listing to have expired or been withdrawn before your application date. An FHA 203k refinance requires the property off the market on or before the application date. USDA rate and term refinances and USDA streamlined refinances use the application date. Fannie Mae standard and high balance refinances allow the property to come off the market up to the disbursement date of the new mortgage.
It is usually a condition rather than a decline. Where the property was listed by you within the past six months from the note date, it may not be currently listed at the time of loan application, and the file will require a borrower letter of explanation and a listing cancellation. At least one program permits both rate and term and cash-out refinances on recently listed properties.
Not on the programs that publish this rule. Multiple listings within 12 months of the note date are ineligible. That is a hard stop, not a document request, and it is measured against the note date rather than the application date. Give us the listing and cancellation dates up front so the file goes to a program that can actually close it.
Not right away. Home equity loans are ineligible when the property was listed for sale within six months of the application date, and second lien home equity lines use the same six month window from application. There is one exception worth knowing. At least one home equity line program is built specifically for homes that are currently for sale. It is not offered in Texas and not for loan amounts greater than $400,000.
On a primary residence, yes. Fannie Mae standard and high balance refinances require borrowers to confirm their intent to occupy the subject property on principal residence transactions, and the HomeReady refinance asks for written confirmation of intent to occupy as well. It is a short written statement in the file. It comes up here because a home that was just on the market raises the question.
Yes on some programs, no on others. An FHA cash-out refinance requires the listing to have expired or been withdrawn before the application date. Some jumbo programs treat a cash-out refinance as ineligible when the property was listed at any time within the six months before the application date. At least one program permits both rate and term and cash-out refinances on recently listed properties.
Find out what you qualify for
Bring the listing dates and the cancellation notice, and you will know which programs are open before you fill anything out. Get a fast, no-obligation pre-qualification today.
Get Pre-Qualified*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. Rural housing financing is governed by USDA area loan limits and income limits rather than by conforming loan limits. Down payment and cash-out limits vary by occupancy, credit score, and documentation type. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.