It seems as though it is hard to find a company that does a “no season loan” for properties to be flipped. Does anyone deal with a particular lender that does “no season loans?” One of my associates is about to purchase a property, then sell it within about two weeks. Any info on a “no season lender” will help.
Hello, I’m still learning about this and I’m afraid I won’t be of much help to you, but would you be kind as to give a brief explaiation of what a no season loan is?
Yes. A “no season loan” is a loan that is given to a 2nd buyer without any restrictions given to the 1st buyer for the period that they will have to hold the property before selling it to a 2nd buyer. Most mortgage companies require a season of 3 to 6 months that an investor must hold their property before reselling it to a 2nd buyer. A mortgage company that approves a loan for an investor and does not require them to hold the property for a certain period of time means that they will give a “no season loan.”
Most lenders who opperate off of FNMA/FHMLC guidelines do not have seasoning restrictions. These are conventional loans and are not for those who are credit challenged. Those loans would be made by noncomforming lenders and most do have a 3-6 month requirement.
There are a couple that don’t restrict but there are many other questions in order to determine if they could qualify.
It would be best if your associate contacted a mortgage consultant that specializes in investment loans.