Title Seasoning Issues On Flips
Does anyone run into title seasoning problems when getting retail buyers qualified on loans on your newly-renovated houses? For example, do you have to have held the title for at least X months before they'll do a loan on it?
And what about if it's been flipped before you buy it - does that affect it too?
You really need to find out what the laws of your state are regarding Wolesaling and loan seasoning and then find out if the lender is willing to work with you. There are some excellent threads on this here, check out some of the older posts on this subject and go from there. Good luck.
First there are no state or federal laws that regulate flipping. There are however "lender rules" which people commonly mistake for "laws" that must be followed.
Depending upon the lender, yes you may have to season your deal before you can close it with your new buyer. If your lender has seasoning requirements you have to wait it out. With FHA loans now, you must wait a minimum 90 days. There is no way around this.
There are lenders out there that do not have seasoning requirements. If it is important to you, find the lenders in your area who can do this, and then steer your buyers toward them.
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