FHA Cash Out Seasoning

[Sandy Blanton]

Mortgage pros, is the seasoning requirement six or twelve months? If the borrower is seeking to recoup purchase plus rehab funds does that change anything?

Scenario: strong borrower. He made a purchase of $125K last April (10 months ago). The house still needs $100K in rehab work. We had a loan set to launch with Wells Fargo with their in-house/non-FHA rehab product. Then bam, the rep tells us "oops, we have to have one year of seasoning." The borrower is upset/doesn't want to delay the work and moving into his house for another two months. He wants to explore going with an FHA rehab in hopes he can do so w/o waiting another two months.

Any input? He's in Florida. Thx.