Posted by rdla on September 14, 2004 at 08:48:38:
When it comes to RE ownerhip it is the time period you have the RE title in your name. Proofs are public records through title report and closing documents such as final closing statement. Most of the lenders would like to see that you own it for 6 months or more. They will be very suspicious If you just got it for a week and refinancing or selling it for say 30 % or more than you originally got it for. They are avoiding collusion or some gimmick for borrowers and or sellers to raise money with illegit transactions. My brain is not working well today. Can somebody explain this one better or is this good enough.
Seasoning of down payment and closing cost money for Fannie Mae or Freddie Mac Grade loans where in you get the best rate, term and lowest closing cost compared to other loans is 2 months. This means if you need $30,000 for down payment and closing cost to buy that cetain property, lenders want to see these monies documented to be in your savings and checking accounts for 2 months. Better if you have much more left after putting downpayment and closing cost. They don’t want this borrowed because it can jeopardise the loan if you have too much debt payments. Proofs are Bank accounts and or Verification of deposits.
Hope this help,