What is loan seasoning? Title seasoning?

What is loan seasoning? Title seasoning?

thanks

Seasoning means how long one has been on the loan or on the title of the property. Lenders have different requirements for seasoning depending on the program or lender its self.

One lender may not have any seasoning requirements on a refinance, another might have 6 months or a year.

It can also apply to how long someone has owned a property before they sell. Some lenders have gotten spooked by investors buying right, making improvements and then selling for a decent profit.

If either of these are issues in your deal, ask your mortgage broker to use a lender with lower or no seasoning requirements. They are out there.

Good luck and Happy Investing!

Most “A” paper Lenders do not have any seasoning requirements. However, B/C lenders will vary as mortgageboss explained.

There are lenders that have minimal seasoning requirements, but, they generally have higher rates and stricter programs.

what is the purpose of such scheme?