Does anyone know of a particular lender that does No season loans? One of my associates have a property that they are about to purchase, and then turn around and sell it within 3 weeks. This will require a no season loan for the second buyer of the property. Any info will help. Thanks…
Will ther ebe a significant increase in the value he will be selling it at? Are you doing any work to the house? Do the 2nd buyers have good credit and employment so they may qualify for a conforming loan?
the buyer of the property should be running a purchase loan, in which case seasoning of the property doesn’t come into play. The reason lenders require seasoning is to protect themselves against inflated appraisals or cashout and ditch actions by the client. Purchases don’t play by the same rules as cashout loans. By the same token Rate/Term loans usually have no seasoning requirements as well, especially if you are using the same appraised value as the original purchase or refi.
Well… the condo was foreclosed on and now it is fully bank owned. The bank is selling it for 79K. We will be repairing the broken windows, broken door, replacing the carpet, and painting it. Then, selling it for around 110K. I think the 2nd buyers have pretty good credit. What is a conforming loan?
Conforming loans fit into FNMA guidelines. Typically loans with 620+ fico and loan amounts below maximum (417k in most states). Non-conforming loans are Jumbo, Sub Prime, etc. These loans have less attractive features and rates, but get the job done all the same.