If you are trying to flip a house an have owned it less then 90 days, it seems like nobody will do financing on it… What lenders do not care how long you have been on title for?
Thanks Everyone!
Someone else can chime in, but I’ve heard that many local lenders do have stringent seasoning requirements.
Ben
Freddie Mac and Fannie Mae announced that they are virtually denying all loans to real estate investors. They have come up with a whole bunch of new ridiculous rules including:
1.) Eliminating stated income loans to self-employed borrowers
2.) Reducing the maximum number of properties you are allowed to have financed to 4
3.) Eliminating cash out refinances if you have owned the property for less than 6 months
4.) Eliminating refinances if you have the property titles in an LLC
Therefore, I highly recommend checking portfolio lenders such as, small local banks, credit unions and the like. These lenders are not affected by the above rules. By the way, portfolio lenders – don’t work with mortgage brokers like other lenders do.
Last I heard, the 4 property rule is a Fannie Rule, not a Freddie rule. True, lenders are following the 4 property rule because they want to sell their loans and they want to sell to whichever GSE will buy. So, if the loan meets Fannie’s guidelines, it automatically meets Freddie’s.
Actually, Fannie has not implemented the 4 property rule, yet. It is scheduled to become effective on December 1, although many lenders have been using the 4 property rule in their underwriting guidelines just so they won’t be stuck with a loan they won’t be able to sell to Fannie if that loan fails to close before Dec 1.
Fannie and Freddie have never bought a loan made to an LLC. A loan to an LLC is a commercial loan. Fannie and Freddie don’t buy commercial loans.
Definitely look to local banks or credit union but don’t get too excited - they’re not all that eager either. I’d spend some time and money on learning how to find private lenders and how to make presentations to them to raise money.