Mortgage Seasoning

Mortgage Seasoning
Mortgage Seasoning or Non-seasoning mortgage is a loan that is less than one year from the day you purchased your home. The reason for refinancing this type of loan is get a much better rate. Many times I see borrowers go to closing and the lender or broker has increased their interest rate and doubled their closing costs at the time of the closing. The purchasers have put money down and really want this home. What should have been an exciting time has become a "trapped" feeling without any means to resolve the situation. The reason for this is the mortgage broker or lender doesn't care about you, but wants to line their pocket with your money. Most of the time that is the philosophy of the company. If you've been in the above situation you have legal rights and should report this abuse to the State Legal Department.

Another reason is a borrower has inherited the house.

Please give us a call if you have any questions about your mortgage or if you are thinking about purchasing a home or land. If you have any questions about anything to do with a mortgage, we will be happy to help you in anyway we can.

The granting of a long term mortgage to a borrower for the purpose of replacing interim financing used to fund the construction of a new residence will be treated as a refinance transaction. LTV will be based on the lesser of acquisition cost (land value + cost of construction) or appraised value. If the land was owned less than one year, the lesser of the purchase price or appraised value will to be used to determine land value. If the land was owned one year or more, the land value from the appraisal may be utilized. The purchase price of the land and the construction costs must be fully documented.

Mortgage Lenders require1 year mortgage seasoning for any refinance in order to use the appraised value to calculate the LTV. We are able to do non-season loans less than 1 one year old. Some Lenders will do as little as 3 to 6 months seasoning.

Lenders may not allow cash-out on a property during the first six months the borrower owns the mortgage property. (if a borrower has owned a property less than one year the lesser of the sales price or appraised value will be used).

Negative amortization, future advances and wraparound terms are not allowed.

All land contract payoffs will be treated as refinances using the acquisition cost to determine the LTV. If over one year old, use appraised value to determine LTV.