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Author Topic: Any Lenders Willing to Fund Purchase Money Loans without Title Seasoning?  (Read 1248 times)

Offline md202007

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Hi,

Does anyone know of a lender that will fund purchase money loans on no title seasoning short sale flips in California?  Specifically, I am buying short sale properties in CA, taking title, and re-selling them (below FMV) to end buyers within 1 to 30 days (hence the title seasoning issue).  I’m seeking a lender that can fund these “retail” end buyers to facilitate the transaction.  Thanks.

Offline Investment Loans

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There are a handful of conventional lenders that will do this but you will have to be on title for a short period.  It cant be a double close.  Although some investors will tell you that double closes are still doable.  To date, I have not found a conventional lender that allows the double close.

As long as the title company for the new buyer can show that you were on title, this can be worked out.  The appraiser has to indicate that you purchased below market value and had work done to the property.  This will explain the increase in value.

If your buyers are credit challenged and need subprime loans then you'll have a much harder time.  There were only a couple lenders that I've run across that allowed for no seller seasoning.
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Offline md202007

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Hi Ben,

Thank you for the reply.  As a follow up to your post, do you know of any lenders that will consistently fund (in California) a "no title seasoned" loan, or is it a case by case basis? 

Best,

Mitch


There are a handful of conventional lenders that will do this but you will have to be on title for a short period.  It cant be a double close.  Although some investors will tell you that double closes are still doable.  To date, I have not found a conventional lender that allows the double close.

As long as the title company for the new buyer can show that you were on title, this can be worked out.  The appraiser has to indicate that you purchased below market value and had work done to the property.  This will explain the increase in value.

If your buyers are credit challenged and need subprime loans then you'll have a much harder time.  There were only a couple lenders that I've run across that allowed for no seller seasoning.

 




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