Seasoning What I Was Told Today
Hello,
Got a question. I was told today by a mortgage broker that I would need to look at holdoing my properties for at least 6 months because of seasoning!!!
Is there a way around this, or is this true and have to hold each property for this long, if so should I look at renting the property
any help or ideas here appreciated.
MarkB
Certain banks do require a "seasoning period", but there are those out there that do not. My advice would be to find a lender that requires a shorter period of seasoning ie: 3 months, or none at all, then send your potential buyers to them. [ Edited by cserviss on Date 05/23/2005 ]
Use a different mortgage broker...
I am a broker myself and know that there are lenders that do not need any seasoning.
As a general rule of thumb conventional loans(fanniemae and freddiemac) dont have seasoning requirements before being able to use current appraised value. Subprime loans all have at least 6 months seasoning with most going to 12 months.
Great replies!
Oh, one of the post mentioned use a diferent Mortgage Broker... Not my Broker just was one that contacted me, I was simply looking to see if it was the general rule of thumb and it appears it is not.
Thanx
MarkB
when you get a offer call the lender and tell them about the seasoning they will let you know if it is a problem or not. I have heard 30days 3 months and 6 months.
I just sold a house on Monday to an FHA buyer that I had owned just two weeks past 90 days. I had bought it for 68k and sold for 120k with almost no rehab and I did not have to show any receipts. Never thought it would go through. In fact I was mad at the buyer because I told him that he would have to use a conventional lender and then he went FHA. I was just waiting for our contract to expire so that I could relist and make conventional financing an addendeum of the sales contract. But, my buyer showed me and managed to get it through FHA!
Brenda
Brenda -
How did you find such a good deal?![ Edited by Hibby on Date 05/25/2005 ]
Wow Brenda,
Very sweet deal indeed. You ever find another and want to partner LOL Im your guy......
Thank you for the example this is what I was thinking anyway. I understand why seasoning is an issue but I didnt think it was a brick wall. Your deal as well as some of the others mentioned here and else where to me only prove that with a little effort you can get it done.
I am going to start shopping lenders to see which ones have an issue with this, as I am so ready to start purchasing more homes. I am closing on one tomorrow where I am pocketing just under 10k at closing.
I am really pumped!!! Makes me long for the next deal
Thanx again Brenda... Hey we might need to do lunch sometime Im not far from you.
MarkB
It is just dumb luck. Right now FL is going insane. You can buy something at market price and by the time you are ready to resell it you look like Donald Trump.