Seasoning Period (New Construction)

[Jacob Glover]

Hi all!

My fiancé and I are going to be building our first rental property this spring. We are financing the build with a Heloc, once finished we’d like to cash-out refinance ASAP to payoff our line of credit. We purchased the raw land fall 2024. 

I know the seasoning period for LTV cash-out refinancing is typically 6 months. In our situation, would that seasoning period begin when we closed on the land in fall 2024? Or once I finish building the house and get the C.O.?

Thank you in advance!
Jake

[Stuart Udis]

First, not all lenders require a seasoning period and when a seasoning period is a requirement the timeframe varies lender to lender. Treat the stabilization of the property as the start of the seasoning period which is when the construction is completed and property is leased. Since you haven't started the project yet, use this time to network with lenders to see who offers the best terms....seasoning, rate, leverage and pre-payment penalty terms.