No seasoning issue lenders

I am interested in flipping properties using a double closing. Does anyone know of a lender that does not have a problem with the seasoning issue?

I heard GMAC has a product that might work. If you do the research let me know! i do know of several companies that will let you cash out to rehab with no seasoning

I will contact GMAC today. What does “cash out to rehab mean”? Thanks!

Waht kind of prpoerty? And are you paying cash for the property?

I am interested in buying homes. I would like to do a double closing with my buyer providing the financing to purchase the property. However, I understand that most banks will not make a loan if my name (seller) is not on the title. Perhaps it would be better for me to assign my contracts to an investor for a fee.

Cash out Rehabbing means that if you were to buy a below market value property today with cash (HML money), you could “cash out” refi tomorrow with a conventional rehab loan at 90% of the ARV, there are no restrictions as to what improvements you make…add an inground swimming pool and pay off the HML. you can do this and never have to reachh into your pocket and have a lot of equity in the property to boot. These rehab loans allow for 6 months of no mortgage payments and you could sit on it during this time increasing market equity and be able to sell on the open market with out any seasoning issues!!!

Would you mind going through the rehab loan / cash out rehab process in a little more detail. I’m new at this and before I jump in head first I feel that there’s a lot I still need to know about financing options. For example, I have no idea what “seasoning” means.

I’ve also heard that you can do a straight up rehab loan for up to 80% or 90% of ARV, so why is that a less attractive option than this other process you’re talking about? What is the purpose of doing a HML first and then immediately refinancing to pay it off? Doesn’t that just cost you extra money for financing charges and whatever interest you owe on the HML. More info please!

With the cash out rehabbing can you essentially do it like a flip but just add this or that to make it be a rehab?

I know it’s exciting to pick up below market value stuff but if you want to make your most money you need to do it right!

Hml are high interest and balloon loans the quicker you get out the better? If you’re gonna just flip it in a short period of time then just stay with the hml. However keep in mind there are perils an bumps in the road ahead. This is what conventional financing is all about- No bank wants to finance the flip it costs them to much and the loan officers get there commissions snapped back. So call it proper etticate, banks do look out for one another that’s why most want you to wait at least 120 days to 6 months before they will go off the appraisal only and not your HUD 1.
So my idea is use creative financing to your advantage, purchase with hard money pay off with a conventional rehab loan(not an HML rehab loan) conventional ones will let you cash out upto 90% of the after improved value, no seasoning. Depending on your fico and doc type they will let you also escrow mtg payments for upto 6 months. Now you can breathe…do some real rehabbing that will truley increase the value and now you have 6 months to do so which means that your market value has increased and your buyers will be able to obtain conventional financing. If done right you should never reach into your pocket for anything even closing costs.

So how do you get a conventional rehab loan if you have no money in and have nothing to put down? I myself have never gotten a loan ever, but am looking at high end props with prices at 45-50% below appraisal and comps. So I would like to get a HM loan and then do this very thing. Please let me know immediately.

Also, can this rehab cash out refi through conventional lenders be worked for a flip that you might want to hold to let appreciation work on your behalf?

What if credit is shot and all you have is 6 months reserves? Then what happens?

Everything depends on the borrower’s credit … there must be at least one tradeline open … having reserves looks always better than don’t have any … last solution would be to use a private money.

You could assign the contract for a fee and lenders do go for that they really cant do any this about it but it does have to be with in reason. It is on the contract. If a lender does have a problem which is few and far between at least with my lenders

You could create a note and do a simo closing with that and the sell of the not creats the fees needed. This is just a tad more advance technique and it can and does work

Some banks will take you but you will need to go stated and have a steady deposit history…

That is a hard senario, but it can be done. The problem with most lenders is they don’t know what thier doing. And the rest are just lazy. You need to find one take pride on closing tough files.