Owner Finances for 30 days then get it refinanced? - Posted by Mike

Posted by Ed Garcia on January 25, 2001 at 14:41:59:


I’m sure you’re aware that most lenders require seasoning. Because your purchase was within 30 days, chances are the lender would ask to see your purchase agreement, and request for you to verify down payment according to the terms of the purchase agreement. The may even ask for bank statement verifying where the down payment came form and for how long you’ve had the down. If you say your parents or a member of your family lent you the money, they may request verification from them as well. In most cases after 12 months, they won’t ask any questions. Nice try Mike, but lenders as a rule, are one step a head of you. Remember there can be an exception to the rules, I’m just telling you what the vast majority of lenders would more than likely do.

Ed Garcia

Owner Finances for 30 days then get it refinanced? - Posted by Mike

Posted by Mike on January 25, 2001 at 13:46:34:

I pulled this from one of the success stories…

“I asked him to sell them to me on an owner contract with a payoff due in 30 days. This would then allow me to immediately refinance and pay him off without putting money out of my pocket”

Question: Will most lenders honor this quick of a refinance with nothing down? Is this a good technique?


  • Mike

Here is some additional information!!! - Posted by Anna Davies

Posted by Anna Davies on January 25, 2001 at 15:03:02:

That was my success story, so maybe I can elaborate for you. I purchased a block of 4 homes on individual lots from someone in desperate need to sell. He sold them to me for 72% of the FHA appraised value. I bought them on an owner contract at 8% interest, amortorized over 30 years and a balloon payment due in 30 days. A bank here in washington has a no seasoning requirement program which i utilized to refinance the properties at 80% of FHA appraisal. I did not need to prove a down payment, because i had purchased them below 80% of their value. I wouldn’t say most lenders would do this, but columbia bank in WA does. I refi’d at a little higher interest rate, but that wasn’t my concern. I am not sure what their credit requirement was. Hope that clears up your questions, feel free to email me if you want more information. Anna Davies