01/01/2011Happy New Year! We wish all of your a successful and profitable 2011!

Share |

Jump to Category:

View All

Click a category below to view different forum categories.

BiggerPockets

General Info

Rss10 BiggerPockets Q&A, Site Questions, & Announcements

774 topics, 5317 posts
Last Post about 2 hours ago

Rss10 New Member Introductions

4092 topics, 22719 posts
Last Post 33 minutes ago

Rss10 BiggerPockets Success Stories

114 topics, 1265 posts
Last Post 4 days ago

General Real Estate

General Real Estate

Rss10 Buying Real Estate

735 topics, 4870 posts
Last Post about 2 hours ago

Rss10 Selling Real Estate

195 topics, 1514 posts
Last Post 1 day ago

Rss10 Renters

161 topics, 1319 posts
Last Post about 1 month ago

Rss10 Get Foreclosure Help - Help Stop Foreclosure Forum

200 topics, 1626 posts
Last Post 2 months ago

Rss10 Home Owner Association (HOA) Issues & Problems Forum

76 topics, 471 posts
Last Post 25 days ago

Rss10 Do it Yourself

238 topics, 2041 posts
Last Post about 18 hours ago

Reviews & Feedback

Rss10 Real Estate Deal Analysis and Advice

1341 topics, 10279 posts
Last Post about 1 hour ago

Rss10 Real Estate Guru, Book & Course Reviews and Discussions

587 topics, 5555 posts
Last Post about 4 hours ago

Rss10 Ask About A Real Estate Company

255 topics, 3805 posts
Last Post 4 days ago

Real Estate Investing

Investor Basics

Rss10 Starting Out

3608 topics, 25168 posts
Last Post 32 minutes ago

Rss10 Investor Psychology

261 topics, 3932 posts
Last Post 3 days ago

Rss10 General Real Estate Investing

2778 topics, 17998 posts
Last Post 3 minutes ago

Rss10 Real Estate Investor Marketing

723 topics, 5692 posts
Last Post 2 days ago

Landlord & Tenant Forums

Rss10 Rental Property Questions & Landlording Issues

2014 topics, 16906 posts
Last Post 21 minutes ago

Rss10 Land & Farm Investing

106 topics, 678 posts
Last Post 2 months ago

Rss10 Mobile Homes & Mobile Home Park Investing

300 topics, 2141 posts
Last Post about 21 hours ago

Foreclosure Investing

Rss10 General Foreclosure & Pre-Foreclosure Forums

896 topics, 5069 posts
Last Post about 9 hours ago

Rss10 HUD, VA, and Tax Sales

137 topics, 848 posts
Last Post about 1 month ago

Rss10 REOs

775 topics, 6057 posts
Last Post 1 day ago

Rss10 Short Sales

1074 topics, 8738 posts
Last Post about 1 hour ago

Real Estate Strategies

Rss10 Wholesaling

1661 topics, 11648 posts
Last Post about 3 hours ago

Rss10 Rehabbing and Flipping Forum

844 topics, 6123 posts
Last Post about 2 hours ago

Rss10 Developing

160 topics, 858 posts
Last Post 7 days ago

Rss10 Pre-Construction & New Home Construction

78 topics, 391 posts
Last Post 2 months ago

Rss10 Innovative Strategies

223 topics, 1382 posts
Last Post 4 days ago

Rss10 Tax Liens, Notes, Paper, & Cash Flows Discussion

333 topics, 1660 posts
Last Post about 22 hours ago

Rss10 Rent to Own a.k.a. Lease Purchase, Lease Options

249 topics, 1469 posts
Last Post about 5 hours ago

Rss10 1031 Exchanges

51 topics, 267 posts
Last Post 8 months ago

Commercial Real Estate

Rss10 Commercial Real Estate Investing Forum

605 topics, 3187 posts
Last Post 3 days ago

Real Estate Dealmaking

Rss10 Make Deals, Find Partners, Mentors & BirdDogs, etc.

2859 topics, 10199 posts
Last Post 4 minutes ago

Rss10 Promote Your Real Estate Buyer's List

144 topics, 511 posts
Last Post 3 days ago

Rss10 Property Wanted

557 topics, 2616 posts
Last Post about 1 hour ago

Rss10 Seeking Financing, Money, or Loans

1080 topics, 5979 posts
Last Post about 3 hours ago

Rss10 Tax Liens, Notes, Paper, & Cash Flows Dealmaking

213 topics, 1558 posts
Last Post about 5 hours ago

Rss10 Bulk REO Discussion and REO Dealmaking

829 topics, 5791 posts
Last Post 4 days ago

The Business of Real Estate

Business Basics

Rss10 Goals, Business Plans & Entities

315 topics, 2919 posts
Last Post about 1 hour ago

Real Estate Technology and the Internet

Rss10 Technology, Social Media, Real Estate & The Web

162 topics, 1289 posts
Last Post 4 days ago

Rss10 Real Estate Blogs & Blogging

18 topics, 191 posts
Last Post 13 days ago

Real Estate Finance & Legal

Loans, Mortgages, Credit Lines

Rss10 Private & Conventional Lending Discussion

928 topics, 4614 posts
Last Post about 1 hour ago

Rss10 Creative Real Estate Financing

495 topics, 2869 posts
Last Post about 18 hours ago

Financial, Tax, and Legal

Rss10 Tax, Legal Issues, Contracts, Self-Directed IRA

743 topics, 4266 posts
Last Post about 2 hours ago

Rss10 Credit & Credit Repair

159 topics, 1196 posts
Last Post 9 days ago

Rss10 Property Insurance

71 topics, 488 posts
Last Post 10 days ago

Rss10 Bankruptcy

14 topics, 75 posts
Last Post 3 months ago

Real Estate Professionals

Real Estate Professionals

Rss10 Real Estate Agents

456 topics, 2218 posts
Last Post 1 day ago

Rss10 Bankers, Lenders, and Mortgage Brokers

332 topics, 1144 posts
Last Post 1 day ago

Rss10 Contractors

98 topics, 445 posts
Last Post 3 days ago

Local Real Estate

Local Real Estate

Rss10 Local Real Estate Networking

487 topics, 2481 posts
Last Post 4 days ago

Rss10 Americans & International Real Estate

132 topics, 448 posts
Last Post 3 months ago

Rss10 Foreigners Buying in the USA

45 topics, 223 posts
Last Post 14 days ago

Rss10 Canadian Real Estate

24 topics, 89 posts
Last Post 3 days ago

International Real Estate

Marketplace

Real Estate Marketplace

Rss10 Mortgages & Lending

348 topics, 1472 posts
Last Post 17 days ago

Rss10 Residential Property, Land, & Farms For Sale

711 topics, 1331 posts
Last Post 4 days ago

Rss10 Real Estate Events & Happenings

150 topics, 427 posts
Last Post about 1 month ago

Rss10 Commercial Properties for Sale or Lease

217 topics, 619 posts
Last Post 2 days ago

Rss10 Domains & Website Reviews

40 topics, 283 posts
Last Post 10 days ago

Rss10 Classifieds - Promote your Website, Newsletter, or Product

613 topics, 2174 posts
Last Post 24 minutes ago

Off-Topic

Off Topic

Rss10 Off-Topic

1461 topics, 14603 posts
Last Post about 2 hours ago

Rss10 Political Talk

281 topics, 4900 posts
Last Post about 7 hours ago

BiggerPockets Resources:

Forums » Starting Out » Do I need to worry about seasoning when rehabbing?

Do I need to worry about seasoning when rehabbing? Subscribe to Do I need to worry about seasoning when rehabbing? 12 posts by 6 users

Signup


Minna R.

Real Estate Consultant  Tolland, Connecticut 
Member since Jan '08
N1420892947_14361_6260_forum_avatar

658 Posts

251 Influence

2 Awards

I am not keeping the property, just selling it. I bought for 162 2 weeks ago, will be marketing for 250 range in 2-3 weeks. Will prospect buyers have a problem with their banks lending on my property due to seasoning issues, or is this not something to worry about ?

Jim G.

Residential Real Estate Agent  Ohio 
Member since Jan '08
Me_forum_avatar

558 Posts

74 Influence

2 Awards

Only if they try to get a conforming loan on it. The new programs will kick out the house they may need to go with specialty lending.

Minna R.

Real Estate Consultant  Tolland, Connecticut 
Member since Jan '08
N1420892947_14361_6260_forum_avatar

658 Posts

251 Influence

2 Awards

How?..With a regular bank loan, when the people called my ad. My bank appraised the house at 190 as-is at the time, if that makes any difference.

Ryan W.

Real Estate Investor  Amarillo, Texas 
Member since Jan '08
Bust_forum_avatar

1812 Posts

4504 Influence

7 Awards

Seasoning requirements are an issue for a rehabber. All FHA loans require at least 90 days seasoning (seller must own it for that long), and if there is less than 6 months seasoning then 2 appraisals are required. Some conventional lenders are taking on the same requirements.

I wasn't aware that all conforming loans require it, as Jim stated. Conforming is if the note is to be resold on the secondary mortgage market the secondary market will require it to " conform" to certain standards. I think it might depend on what type of loan it is. There are different stipulations for different types of loans. Your typical conventional loan for a homeowner will most likely have seasoning requirements on it. I would recommend that YOU start shopping around for different mortage brokers/lenders that don't have seasoning requirements. You can then refer your potential buyers to these lenders if their lender has seasoning requirements.

Minna R.

Real Estate Consultant  Tolland, Connecticut 
Member since Jan '08
N1420892947_14361_6260_forum_avatar

658 Posts

251 Influence

2 Awards

Ok - when I think " conventional" , or " conforming" I see lots of money down, verified income, good debt to income ratios, one fixed single loan. Aren't most loans non-conforming nowadays, anyway? Or is my view of conforming way off?

Ryan W.

Real Estate Investor  Amarillo, Texas 
Member since Jan '08
Bust_forum_avatar

1812 Posts

4504 Influence

7 Awards

If it isn't a commercial loan or hard money, then its pretty much conventional, FHA, or VA.

Conventional financing is probably over 70% of all loans. 5% down is typical but 100% financing is very common, also. Stated income is still conventional, and ARM's are too. They're all sold on the secondary " conforming" market. The only thing that isn't normally sold on the secondary is a bank's commercial loans. That is unless the loan is through one of the bigger lenders (Wells Fargo, Bank of America, etc.). They would probably keep all their loans, but they will still conform to the secondary standards.

watapolice

   
Member since Aug '08
No_avatar_forum_avatar

16 Posts

1 Award

How do you get around the seasoning requirements - since the idea is trying to off load the property as quickly as possible? Can you do a shorterm Lease option, collect a large down payment and have the prospective buyers move into the house while the loan process is trodding along?

Who has a list of lenders who do not require seasoning?

Ryan W.

Real Estate Investor  Amarillo, Texas 
Member since Jan '08
Bust_forum_avatar

1812 Posts

4504 Influence

7 Awards

I get around it by wholesaling. Grin

I pretty much only sell to investors, and they have to have cash, hard money, or a commercial loan.

Most of the rehabbers I know just end up eating it in holding costs until the seasoning is up, but obviously as you seem to already have caught on, there are other creative options. With each of the options there are advantages and disadvantages. Any option where you are moving the person into the property before you get your money in full could possibly lead to a vacant house that needs to be rehabbed again.

Imentor

   
Member since Aug '08
No_avatar_forum_avatar

9 Posts

watapolice,

I tried that and my loan got kicked back too. you could try to create a note and sell the note at closing or shortly thereafter. You may have to discount it some, but it may not be more than what your holding costs would have been.

Good Luck

Rick

Minna R.

Real Estate Consultant  Tolland, Connecticut 
Member since Jan '08
N1420892947_14361_6260_forum_avatar

658 Posts

251 Influence

2 Awards

So what are we talking about here? I can't close again til after three months (doable) or I can't close again for six (NOT COOL). Or i just make " no sesoning requirements" an absolute necessity. Or I do some kind of buy owner financed til seasoning kicks in?

Imentor

   
Member since Aug '08
No_avatar_forum_avatar

9 Posts

Minna,

In most cases you will probably have to wait 90 days. This does not mean hoever, that you can't take a large (non-refundable) option fee from your buyer before the loan closes.

Good luck,

Rick

   

Signup