6 Month Seasoning Period Issues

[Justin Munk]

Ideas to Get around the 6 Month Seasoning Period most Banks require?? It is slowing down my BRRRR process. Most the banks/credit unions I have talked to require 6 months.

[Jack BeVier]

Hey Justin, totally understand. Historically, we've had to deal with the same seasoning issues when building our rental portfolio (now at 762 single family rentals in Baltimore City), which are super frustrating. We also lend private money (fix & flip and long-term rental) and we spent COVID addressing the frustrating gap between credit unions and FNMA. We launched our 30-yr fixed rate rental loan product Thanksgiving 2020. Its DSCR based (no tax returns) and seasoning is 3 months. I 110% agree that a 6 month seasoning requirement is arbitrary and lacks common sense (if you're a real estate investor, which we are). Our 30-yr program is a game changer - we would have gotten to 762 properties SO much faster if we'd had this product available. Rate is 4.25%, 30-yr fixed rate, 30-yr term, LLC borrower. Bank rates, 30-45 day closing timeframe, no tax return or DTI calc BS. 680 min FICO. We closed 161 loans last month. It's a game changer. I'll take the Pepsi challenge against any non-FNMA loan in the country.