Re: Unseasoned re-finance or finance - Posted by jimup
Posted by jimup on September 23, 2005 at 13:52:41:
If your borrowers can qualify for a conventional loan (FNMA or FHMLC) there is no seasoning requirement.
Sub prime lenders are a different story - seasoning requirements vary by lender. As a previous poster stated, if you can document the increase in value it is normally not an issue.
In most cases, the best loan for a B+ or better sub prime borrower is an FHA loan. FHA will allow the down payment (generally 3%) to come from a gift from a non-profit agency. There are several non-profits available that are indirectly funded by the seller. I use www.thebuyersfund.com. In addition the seller can pay up to 6% in closing costs for the buyer.
The only draw back is FHA has a 90-day title-seasoning requirement. In most cases it will take 90 days to rehab, sell and close the property.
Best of luck…