I just bought a house. I have an offer to rent with option to buy from a person who does not have all the necesary conditions to qualify for a 100% loan por a primary home.
What is the best way to handle this considering seasoning, be this person or someone else that may want to buy my property.
Seasoning is not a problem with many lenders. It is usually a 6 month ownership to maybe a year for some. They are trying to avoid fraud and want the seller to have owned the property for a period of time and not just over night for instance. In the past crooks including appraisers have done phony flips on property and have defrauded lenders out of millions.
The issue will not even come up on a lease option deal. Only when your buyer tries to get a new loan will the seasoning problem come up, and there are lenders that do not even take issue with it at all. Others will overlook seasoning if you can show that major improvements were done to the property to justify the higher value.