“Seasoning” requirement in Wisconsin

7 Replies

Hey BP’ers! Does anyone know the “Seasoning” requirements in Wisconsin? Looking at, possibly paying cash for a house, and then getting a mortgage on the property. I figured I would ask on here since the banks are closed. I will be calling several tomorrow. I will also take any suggestions on banks or credit unions as well in the Milwaukee area. I have been using Waterstone Mortgage. They work, just looking to expand my horizons. Thanks in advance!

You can immediately refi at the lenders LTV for the purchase price, and perhaps cash spent on improvements. To refi based on the appraisal value, it's generally 6-12 mo.s.

Hey David,

I am just curious. Do you need to pay cash for the house? If that's what it takes to get the deal I understand. If not, then you should find a small local lender in your area who keeps loans in house. This will give you way more flexibility and you can negotiate with them over coffee.

Once you find that great local lender you can have them do a "As Completed Appraisal", then they will give you 75-80% LTV of future value, and term it out. So you can save money on closing costs, title work, etc...

This also gives you a better ROI because you are not coming out of pocket with your own cash. This is my preferred way to buy houses because I can buy wholesale deals all day with no money out of pocket and get money for rehab at closing. It's a pretty good process. :)

Hi @David Burkart

I bought a duplex in West Allis on 1/15/14 for cash ($118,000) and will be closing a loan this Wednesday. The appraisal came back at $185,000, I'll be getting back what I paid for it.

I spoke to a another lender a closed a deal with in March and was told they could only give me 70% of what I paid for the property for the first 12 months. After that they could work off the appraised price.

I was surprise when the lender I'm currently working with said I could get all the money I paid for the property since I've only owned it for 5 months. I think the fact that it appraised so well was a contributing factor.

All pizza must have 14 shakes of oregano...in wisconson

@Scott Demots can you send me private message

of the lender. Thank You

" The appraisal came back at $185,000, I'll be getting

back what I paid for it "

Can you explain how the appraisal completed value works without putting $ down?

@David and Kristin Burkart

IF you pay cash for the property, you can immediately start the process for delayed financing. Here is some information on Delayed Financing. You can also Rate and term refinance a mortgage without a seasoning requirement.

Delayed Financing Exception

A cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters:

  • The new loan amount is not more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV).
  1. 1. SFR mortgage #1-4 - 75% LTV
  2. 2. Duplex mortgage #1-4 70% LTV
  3. 1. SFR mortgage #5-10 -70% LTV
  4. 2. Duplex mortgage #5-10 - 65% LTV
  • The purchase transaction was an arm’s length transaction
  • The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property. The preliminary title search or report must also confirm no liens on the subject property.
  • The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.

    Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan. Funds of gifts are not allowed with investment purchases.

  • All other cash-out refinance eligibility requirements are met and cash-out pricing is applied. This is allowed on primary residences, second homes and investment properties per cash-out guidelines. 

    Ineligible Transactions


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