Fannie & Freddie Seasoning Requirements

Good morning,

So, effective March 7th (All loans submitted after this date) Freddie cash out loans will require 12 months seasoning with some exceptions (I will post a link so that you can read up on it) like if you inherit the home or you're buying someone out if you have owned the home jointly for at least 12 months. Divorce comes to mind but there’s many more scenarios that this will fit under.

This is a huge blow to rehab refinancing using Freddie. Fannie has not changed their guidelines as of today (1-20-23) and remain at 6 months which is great. This will also make DCSR loans and other rehab loans look much more attractive moving forward since many of those lender’s investors don't require 12 or even 6 months of seasoning.

If you're executing BRRRR's or any other type of rehab strategy that requires a refinance, make sure you're planning accordingly if you need to use Freddie. They have some very favorable guidelines towards student loan debt etc.

It's imperative that you use a Broker or Loan Officer that has experience in this field as this will make your transaction run smoother and faster for you.

I hope this helps and have a good one.

https://guide.freddiemac.com/a...

https://guide.freddiemac.com/a...

Update: Fannie will be implementing the same rule starting April 1st

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Take care and have a good one.