Only if they try to get a conforming loan on it. The new programs will kick out the house they may need to go with specialty lending.

Seasoning requirements are an issue for a rehabber. All FHA loans require at least 90 days seasoning (seller must own it for that long), and if there is less than 6 months seasoning then 2 appraisals are required. Some conventional lenders are taking on the same requirements.

I wasn't aware that all conforming loans require it, as Jim stated. Conforming is if the note is to be resold on the secondary mortgage market the secondary market will require it to " conform" to certain standards. I think it might depend on what type of loan it is. There are different stipulations for different types of loans. Your typical conventional loan for a homeowner will most likely have seasoning requirements on it. I would recommend that YOU start shopping around for different mortage brokers/lenders that don't have seasoning requirements. You can then refer your potential buyers to these lenders if their lender has seasoning requirements.

If it isn't a commercial loan or hard money, then its pretty much conventional, FHA, or VA.

Conventional financing is probably over 70% of all loans. 5% down is typical but 100% financing is very common, also. Stated income is still conventional, and ARM's are too. They're all sold on the secondary " conforming" market. The only thing that isn't normally sold on the secondary is a bank's commercial loans. That is unless the loan is through one of the bigger lenders (Wells Fargo, Bank of America, etc.). They would probably keep all their loans, but they will still conform to the secondary standards.

I get around it by wholesaling.

I pretty much only sell to investors, and they have to have cash, hard money, or a commercial loan.

Most of the rehabbers I know just end up eating it in holding costs until the seasoning is up, but obviously as you seem to already have caught on, there are other creative options. With each of the options there are advantages and disadvantages. Any option where you are moving the person into the property before you get your money in full could possibly lead to a vacant house that needs to be rehabbed again.

So what are we talking about here? I can't close again til after three months (doable) or I can't close again for six (NOT COOL). Or i just make " no sesoning requirements" an absolute necessity. Or I do some kind of buy owner financed til seasoning kicks in?