Seasoning - Posted by Sterling

Posted by Dimpil on October 12, 2003 at 15:38:11:

1st, I’d check with my accoutant to be sure.

2nd, You would get a break on title insurance as long as you used the same title company. Appraisal would still be valid.

3rd, I’d get my financing together for the second close to make sure it would be under the 59 days. Get everything you need to submit to the lender, get the broker or if you are going to a bank, bank loan officer to pre approve you based on your income docs and such and proposed refi amount, that way all you have to do it bring in appraisal and order title (or they would have to order title) after you close on purchase. If you line everything up right and depending on the load of the closing attorney, you should be able to close in 5 days and this is assuming appraisal if good for new lender/bank.

4th, don’t worry about the closing cost, they usually can be taken off your taxes so it’s another business expense.

But as I said it’s important to get everything lined up 1st on the back end before you move on the front end. Leave no stone unturned and make your broker/banker give you a list of EXACLTY EVERYTHING he needs, no surprieses, and make sure you tell him you are refinancing a purchase you just made and what will they refinace, purchase price or appraised value.

The more quesitons you ask (and a broker may be better then banker) no matter how stupid you think they are the better off you will be. After all, this is your money and your time and your investment so you owe yourself full disclosure.


Seasoning - Posted by Sterling

Posted by Sterling on October 12, 2003 at 06:53:06:

Unless they’ve changed the rules since the last time I did this(1997), you
can take money out of an IRA and not suffer any tax penalties if you put
it back in 60 days. The IRS sees this as a rollover, not a withdrawal.
You can do this once per year.

It occurs to me that I could negotiate price instead of terms, an offer of
cash and a quick closing in return for a price significantly lower than
appraised value, hopefully 80% of value or less. I’d get the cash from my

Now the problem is to get the cash back in my IRA in 59 days.
Disregarding for the moment the question of whether a lender would
loan me 80% of value rather than 80% of purchase price, my question is
whether seasoning requirements would preclude getting a mortgage in
59 days.

A second possible problem with this strategy is closing costs. There
would be two closings, one for the purchase and one for the mortgage.
Could some closing costs be used for both closings, such as appraisal or
title search/insurance? Would there be some costs required for one
closing but not the other and vice versa?

Re: Seasoning - Posted by Terry(IN)

Posted by Terry(IN) on October 14, 2003 at 12:56:28:

Check out the self-directed IRA info at