Hey Isaiah! The term "seasoning period" usually refers to the amount of time you're required to hold a property or a loan before you can refinance it, especially in the context of the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy.
During the BRRRR strategy, individuals typically purchase a property using hard money loans (high-interest, short-term loans used for property investments) to fund the purchase and renovations. After the property is renovated and rented out, they seek to refinance the property with a traditional mortgage to pay off the hard money loan and potentially extract some cash.
However, some lenders impose a seasoning period for refinancing, which means that you must hold the property for a certain period (often six to twelve months) before refinancing is allowed. This is done to ensure that the property has been stabilized and to mitigate risks for the lender.
Since there are various lenders and loan programs available, it's critical to connect with a knowledgeable mortgage professional who can guide you through the refinancing process and help you understand the specific seasoning requirements of different lenders.
If you have any further questions or need additional clarification, feel free to ask!
