Financing in San Jose>Question Details

Tim, Both Buyer and Seller in California

Seasoning Requirements

Asked by Tim, California Mon Jun 16, 2008

I am thinking about buying a home for investing. Are there any lenders that will do refinancing on investment properties with no seasoning? We would like access to the equity in the home as soon as possible, so we'd be looking for a lender that would work off the appraised value and not our purchase price.

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Tim,

Your scenario looks like something that I would be able to do.

I have included a small snap-shot of my guidelines concerning "seasoning";

REFINANCE OF LOANS WITH LESS THAN ONE YEAR SEASONING

The underwriter should analyze transactions involving the payoff of a first lien that has been seasoned for less than one year.

If the first lien being paid off was a purchase transaction, and the original purchase price, as stated on the application, is less than the new appraised value the file should contain documentation supporting the increase in value (e.g. appraisal indicates increasing values for the market, appraisal comparables support increasing values, documented home improvements, or a copy of the original appraisal showing the original appraised value higher than the original sales price).

If the increase in value is unsupported, the underwriter should use the lower of the original purchase price or the new appraised value to determine LTV/CLTV.

If the underwriter has knowledge that the first lien being paid off was a cash-out refinance transaction with an LTV greater than 80%, the new Loan will not be eligible for rate/term refinance parameters.

Please feel free to email me directly with any of your financing needs... tino.muratore@gmail.com

Thanks,

Tino Muratore
0 votes Thank Flag Link Mon Jun 16, 2008
Most lenders will require at least six months of seasoning before you can pull cash out above the original purchase price. You will need to wait for six months before any conventional lender will look at a new valuation.
Web Reference: http://GetPrequalified.com
0 votes Thank Flag Link Mon Jun 16, 2008
Tim,

When did you purchase the investment property? What would you estimate the appraised value to be?

Thanks,

Tino
0 votes Thank Flag Link Mon Jun 16, 2008
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