Hi All,
I was wondering if lenders always require the 6 month period between purchases for investment property? If I want to buy one property per month for the next year, are there many lenders that would allow this? Any advice?
Also, does this same rule apply for commercial purchases?
Thanks,
Dan
Does anybody understand what I am talking about? Is this normal to have a “waiting period” between purchases?
This is known as “seasoning”. There are some lenders that have no seaoning rules. Where are you located?
Denver
That was a tough one Mark…
“Where are you from, denver_dan?”
Have another cuppa joe!
LOL!
Keith
Sorry, my wife has me on Decaf. :
Could you give me a guess at what are the % of lenders who don’t require seasoning?
Dan,
Is your question that you bought “Property A” and you think that you need to wait 6 months to buy a new property, “Property B”?
You should be able to buy as many properties as you can afford whenever you want to…
This sounds like a lender restriction. If so, get a second (and then, subsequent) lender(s)…
Keith
Actually the restriction falls under 2 categories.
Rapid acquisition and landlord experience.
If you are under 10 total properties and are using standard conforming loans then the pace at which you buy should not be a factor. These loans are run through an automated underwriting system and can be done so that landlord experience is not necssary.
If you are needing a high ltv loan or a reduced doc loan (such as stated, no ratio, no doc) then a portfolio (ALT-A) loan would need to be done. There are a number of different products offered like this through the various lenders we use. This is where the rapid acquisition pace and landlord experience factor in. Typically you will see that you cant buy more than 2 in a 6 month period or 4 in a 12 month (some say 24 month) period. If you are over this number there must be documetable proof that you have managed multiple properties for at least 2 years. Some lenders, even with landlord experience, will require an exception to be granted.
There are few lenders that do not have this restriction for ALT-A products which are the most flexible programs for investors.
Your goal should be obtainable though.
Thanks, that is exactly the kind of information I was looking for!!