Lenders With No Seasoning Requirements in 2023

Lenders with No Seasoning Requirements

Most lenders and mortgage programs have seasoning requirements that could make it difficult to refinance.

If you are trying to refinance or even purchase a home, there are lenders who have no seasoning requirements that do not require the usual waiting period.

Mortgage seasoning could be related to refinancing after a purchase, bankruptcy seasoning, and also down payment seasoning. We will discuss all of these below and which lenders may offer a solution.

Refinancing with No Seasoning Requirements

Most mortgage programs have seasoning requirements for refinancing. This means you are unable to refinance to lower the rate, or cash out until after a specified amount of time has elapsed after your purchase date.

Rate and Term Refinance Seasoning Requirements

For FHA, VA and USDA loans, you will need to wait 6 months before refinancing without cashing out. For Conventional loans, you can refinance for rate and term immediately after purchasing the home.

If you are refinancing after 6 months, the lender will likely use the original purchase price as the value for the refinance and not the current appraised value.

If you want to use the current appraised value for the refinance, you will need to wait 12 months.

Cash Out Refinance Seasoning Requirements

For cash out refinances, you will need to wait 12 months if you are going to use an FHA, VA, Conventional, or USDA loan.

Seasoning Requirements for Investment Properties

Investment lending has different rules when it comes to seasoning requirements for refinances. In some instances, it is understood that you may purchase a property to rehab, then refinance into a long term loan for rental purposes.

If you did not rehabilitate the property, your lender may use the original purchase price if purchased less than one year ago.

Complete this short quote form to see if you can refinance with no seasoning requirements.

Down Payment Seasoning

When purchasing a home, most mortgage programs require a down payment with VA and USDA as the exceptions.

Underwriters will analyze your bank statements to determine whether you have enough funds to purchase the home. This includes the down payment plus closing costs and any reserve requirements.

Any large deposits that are unusual may need to be seasoned for at least two months. A written explanation could waive the seasoning requirement for that deposit. A good loan officer can help guide you here so your approval or purchase does not get derailed due to down payment seasoning.

Bankruptcy Seasoning Requirements

Most traditional mortgages have bankruptcy seasoning requirements where you must wait a specified number of years before securing a mortgage approval.

There are some subprime lenders who will allow you to purchase or refinance a home just one day after a chapter 7 discharge. If you are going through a chapter 13 bankruptcy, you can get an FHA loan after making 12 on time bankruptcy payments.

Lenders with No Seasoning Requirements

If you are looking for lenders who have no seasoning requirements at all, your options will be limited and relegated to investment property financing.

These are some options for you to choose from for primary residences but with the rapidly changing guidelines, it is best to contact us here and we will help guide you to the option that would fit you the best.