Palmer, AK · Member since 2016 · 142 posts · 34 votes
Hi BP,
I am interested to know if there are any seasoning requirements after a new construction is built. Here's a few key points about this specific case.
- Land is completely paid for
- All work will be done be sub contractors
- I am acting as the GC (unlicensed)
- My city inspects all aspects of the job and provides me with an official building occupancy certificate at the end.
So, once complete and since I have used all my own cash to sell it will there be any snags for someone getting financing on it with a FHA or conventional?
FHA has restrictions on loaning to buyers if the property they want to purchase hasn't been held by the seller for at least 90 days. Assuming that it took you at least 90 days to purchase, build and put back on the market, this shouldn't be an issue. If for some reason you can build in less than 90 days, then this becomes an issue.
Right now the land is in my name but is on owner finance. So I hold title to the land. Does the 90 days start when the owner finance started or when I pay it off?
FHA has restrictions on loaning to buyers if the property they want to purchase hasn't been held by the seller for at least 90 days. Assuming that it took you at least 90 days to purchase, build and put back on the market, this shouldn't be an issue. If for some reason you can build in less than 90 days, then this becomes an issue.
I'm in a similar ordeal. What financing methods do not have seasoning periods for reselling???
I''m located in Ketchikan and we have nearly completed our first spec home. A couple of things to consider:
Most folks around here get financing through Alaska Housing Financing Corp. The rates and loan programs are more favorable since we are considered "rural".
A new home is considered any unoccupied home or one that is less than 12 months old. You will need a licensed inspector inspect all phases of your construction and complete a form called 101, and 102. To be financeable the home must be a 5 star energy rated house as well. Check out www.ahfc.us for more info.