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Rescission Periods – 3 Days For Primary Residence Refi Only

A “Rescission” Period is a mandatory “cooling off” period between the date someone signs loan documents and the date a loan can fund.

There is NO rescission period for purchases, or refinances involving 2nd homes and/or investment properties.

Only a refinance of an owner occupied primary residence requires a rescission period. Prior to the late 1990s, borrowers could sometimes sign waivers to avoid a rescission period if there was an extreme need for fast funding. Lenders never waive rescission periods now.

Rescission Periods are “3 days, to include all days except Sundays and National Holidays”. The rescission days do not start until the day after signing. The below table sets out the days between signing and earliest possible funding.

Signing Day Earliest Funding Day

Monday Following Friday

Tuesday Following Monday

Wednesday Following Monday

Thursday Following Tuesday

Friday Following Wednesday

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646