Wholesaler · Mckinleyville, CA · Member since 2015 · 192 posts · 69 votes
I have some buyers that have fallen in love with one of my houses, however; they have an FHA loan with a seasoning requirement. I don't know much about conventional loans in general (I usually only deal with cash buyers) but I'm hoping I can help them get a non-conforming loan that doesn't have a seasoning requirement so I can sell them this house. Does anyone have any suggestions or thoughts?
Certified Public Accountant · Houston, TX · Member since 2015 · 72 posts · 24 votes
10y
@Account Closed I think it's very nice of you to do this level of research for them. I know you want to get the deal done, but this isn't your problem (technically). So kudos to you for going the distance. I wish I could help!
Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
10y
@Account Closed When you say FHA seasoning requirement, it sounds to me like they have not meet their 1 yr occupancy requirement.
Are they looking to buy the property as owner occupy or for rental? If OO, then they will be committing mortgage fraud. If rental, then they will continue to live at their current location and meet their FHA occupancy requirement.
Wholesaler · Mckinleyville, CA · Member since 2015 · 192 posts · 69 votes
10y
No, they are looking to buy their first home with an FHA loan. This loan has a seasoning requirement which would require that I (the seller) needs to have owned the property for more than 90 days. I'm trying to do a double closing so obviously this isn't possible. But I'm trying to steer them towards a conventional loan with no seasoning requirement, so they can purchase the property immediately after I purchase it.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
10y
@Account Closed
Are they doing FHA because they like the low down payment, because they have DTI issues, because they have credit issues, or because they think that's the only traditional mortgage with less than 5% down?
Certified Public Accountant · Houston, TX · Member since 2015 · 72 posts · 24 votes
10y
@Account Closed I think it's very nice of you to do this level of research for them. I know you want to get the deal done, but this isn't your problem (technically). So kudos to you for going the distance. I wish I could help!
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
10y
I've got a relatively new set of guidelines sitting here dated February 5, 2016, that I've been itching to use in exactly this scenario becaaaaaaaause.... 3% down.
Non-FHA, I don't see any commentary about flips. Silence generally implies consent.
Wholesaler · Mckinleyville, CA · Member since 2015 · 192 posts · 69 votes
10y
@Albert Okagbue thank you for the kind words. There is a human element to this story, and if at all possible, I want to help them. People before paper.
Certified Public Accountant · Houston, TX · Member since 2015 · 72 posts · 24 votes
10y
@Account Closed Yes. In practice how I describe it to myself is that the money doesn't come out of no-where. It comes from peoples' pockets. Keep it up! Let us know how it all works out.