What seasoning means
Lenders want a short track record before you take equity out. So they set a minimum time since you bought the home or last refinanced. It helps show the value is real and that you can keep up with payments.
Seasoning rules are set by the loan program, such as conventional, FHA or VA, and lenders may add their own requirements.
Common rules by program
These are typical guidelines. Programs update their rules, so confirm the current ones with your loan consultant.
- Conventional: about 12 months on your current first mortgage, and usually at least six months on title
- FHA: 12 months of owning and living in the home as your primary residence, with on-time payments
- VA: 210 days from your first payment due date and at least six payments made on your current loan
Exceptions to know about
Delayed financing: if you bought the home with cash, some conventional rules let you take cash out within months of buying, rather than waiting a full year. You'll usually need records showing where the purchase money came from.
Inherited homes: if you inherited the home, the usual time-on-title rule may not apply in the same way. Rules differ by program.
Removing a co-owner: some programs have special treatment when you buy out a co-owner, such as after a divorce.
Payment history matters too
Most programs want recent on-time mortgage payments. A late payment in the past year can delay your eligibility or lead to a no. If you've had a recent late payment, ask your loan consultant how long you'd need to wait.
If you're not there yet
A home equity loan has its own rules. With CapCenter, your first mortgage needs to have been in effect for at least six months before the home equity loan closes, and the home can't have been listed for sale in the six months before you apply.
CapCenter offers fixed-rate home equity loans from $50,000 to $250,000 on single-family primary residences and second homes. They let you keep your current first mortgage and its rate.
Getting ready
- Find your closing date on your current loan
- Keep payments on time in the months before you apply
- Gather records if you bought with cash or inherited the home
- Ask your loan consultant which program fits your timing
