Seasoning - Posted by RP

Posted by JoeS on February 21, 2002 at 11:58:26:

Salt and pepper are a start! Seriously though, seasoning is when something you hold, like a note or a mortgage or a deed to a property ages a little. Some lenders like to see 6-12 months of “seasoning” before they will make a loan against the property. HTH.

Seasoning - Posted by RP

Posted by RP on February 20, 2002 at 15:07:57:

Would someone please explain the term seasoning to me. I am a little confused. Thanks

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 - I am speaking on the behalf of conventional and subprime lenders. Hard Money / Private money lenders have their own guidelines.
Hope this helps.