Refinancing, Credit Scores, and Seasoning in Columbus, Ohio

7 Replies | Columbus, Ohio

I am an US expat living in Austria and currently I do not have a credit score (as of 2017).

Question 1

After talking to some banks regarding refinancing my rental, I was told I will need to build a credit score to apply for a mortgage. The suggestion was to open a credit card and spend to setup a credit history. 

Do you know of any alternative "interest free" alternatives to build my credit score?

Question 2

I was told my property (in Columbus Ohio) will need to "season" for 12 months before a loan can be granted based off of the appraised value instead of the purchase price.

Is this normal and does anyone know of financial institution that will provide shorter "seasoning" periods?

Thanks for all your help!

See answer above regarding credit. Just pay off your balance.

Regarding seasoning, most banks do require 6 to 12 months before you can refinance, unless you’ve rehabbed the property. If you’ve rehabbed, you can usually reappraise and refinance whenever the work is complete. 

If you plan to put a conventional loan in your name, most banks require at least 6 months seasoning before you can refinance even if you rehabbed it.

Thanks for all of the answers. I spoke to two banks and a credit union and they want to have 12 months of  "seasoning". Does anyone know of a bank in Ohio that will require less time?

My rehab should be complete by the end of September. Also I will put the loan in my own name.

Correct on the 12 months of  seasoning. As for the credit build up, get a couple of cards, use them but don't pay them off every month. Keep a small 15-25 balance on them, use them and pay down to 15-25 dollars. You will pay interest but not much.

Hi Todd,

I got the credit part squared away. I was able to boost my credit in a very short time by being a put on other people's credit cards as a co user. That instantly made my credit history match theirs. No problems now in the credit department. I am still looking for a lender that only requires 6 months of seasoning.