Banks have Season period how long
Hello All
Buying house in cash and news rehab so
I know that every bank has Season period I talk to a lot in my area they are saying 6month to 1 year does anyone know if there are any banks that will do less than 6months to 1 year??
Any help would be greatly appreciate
Thanks
Chris
The seasoning period comes from the Fannie Mae guidelines requiring no transfers on the Title for 6 months. So, any lender (bank, credit union, mortgage lender, etc.) thinking of selling you a conforming loan will have this problem. You need a non-conforming loan so they won't try to sell the Note off to Fannie/Freddie/etc. Generally, this is why its recommended that you work with a local/community/regional bank since they are more likely to make this sort of loan. I've never done it so I don't have a list.
A different option would be delayed financing where you purchase in cash, then get the loan within 6mo based on the purchase price. I'm guessing that won't work for you since you are rehabbing the property.
Sorry, I don't have a specific lender for you. Oh, and be mindful that sometimes these small bank lending officers maybe new or not to bright about originating a non-conforming loan for you. So, don't just try a single "bank" once, go to different office branches, if necessary. Good luck.
Keep searching around or get a mortgage broker. I work with clients all the time who buy in cash, then rehab, and cash out immediately up to 80LTV on the new value. No seasoning required. If you're not rehabbing, then 3 and 4 months seasoning are pretty standard too.
Cheers!
if you are buying in all cash and rehabbing in cash, seasoning should not be an issue
