Seasoning Issue with Flips

I had a interesting topic come up in a e-mail that I received from a prospective client who is interested in selling her home.

I wanted to take the opportunity to post some information that I found out about the "seasoning issue" with banks.

Seasoning is the length of time you own a property. Many banks are not allowing consumers to receive conforming loans if they are putting less than 20% down and the seller has owned the property for less than 90 days.

This would arise for instance if a investor purchased a home, made repairs quickly and placed the property back on the market and found a buyer all within 90 days.

I have experienced this first hand in my career. Luckily enough, I was able to sell the home I purchase for investment purposes because I was shortly over the 90 day period. However, the issue did arise.

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