Re: Seasoning - Posted by Michael Grohowski
Posted by Michael Grohowski on February 21, 2002 at 12:24:58:
There are different types of seasoning. There is seasoning on the mortgage, seasoning on the home and a few others. In its basic form, seasoning is the amount of time a mortgage has been getting paid on, the length of time a home has been owned, etc.
The biggest one that you will run into is this:
Most lenders will use the LOWER of the selling price and/or appraisal to determine LTV and loan amounts if the purchase was done within the last 12 months. For example - you have bought a home 3 months ago. The selling price is $100K. You get a new appraisal and the new appraisal states the home is worth $120K. Most lenders and banks will use the $100K to determine how much money they will refi it. This obviously isnt in your best interest. I have lenders with varying seasoning issues and I can overcome many of the seasoning problems you will run into. If you have a deal you want help on - just email me at firstname.lastname@example.org - I am speaking on the behalf of conventional and subprime lenders. Hard Money / Private money lenders have their own guidelines.
Hope this helps.