Depending on the type of loan you may need. There can sometimes be issues with the need for seasoning. We will explain what seasoning is and the various types and reasons for seasoning associated with different types of loans.

Seasoning of a property has to do with showing proof of ownership for a given amount of time. If a lender is looking for 12 months seasoning on a property before they will allow you to refinance a property, they want to see that you have owned the property for at least 12 months.

Most conforming or "A Paper" lenders do not have seasoning requirement but typically most subprime lenders will have seasoning requirements of 12 months in order to use the NEW value of the home.

There are two types of seasoning. There is title seasoning, and there is also what's called cash seasoning, or reserve seasoning.

If you have inadequte seasoned reserves consider adding another asset, such as a retirement account. Even though this money is not immediatly convertible into cash, many lenders will allow it to satisfy seasoning requirements.

 

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