Glossary
Seasoning (refinance seasoning)
Seasoning is how long you must own a property before a lender will refinance it on the new, higher value. Some lenders need 3, 6 or 12 months; some need none.
Seasoning rules decide when your BRRRR refi can use the after repair value. Refinance too early and many lenders cap the loan at what you paid instead of what the house is worth now.
How it works
- DSCR lenders: many use the lesser of the appraisal or your cost for the first months. Run The Deal models the lesser of cost for months 0 to 6, then the appraisal after month 6.
- Conventional cash-out: Run The Deal models 6 months of title seasoning, and the existing first lien must be 12 months old to be paid off with a cash-out refi.
- [Delayed financing](/glossary/delayed-financing): an exception for all-cash buyers, capped at documented cost.
- Purchase + rehab + buy closing costs
- $144,000
- Appraised value after rehab
- $200,000
- Month 4 value basis (lesser of the two)
- $144,000
- Month 4 max loan (75%)
- $108,000
- Month 7 value basis (appraisal)
- $200,000
- Month 7 max loan (75%)
- $150,000
Illustrative. Seasoning rules, value basis and LTV vary by lender.
What to watch
- Waiting costs carry: interest, taxes and insurance for each extra month.
- Title seasoning and lien seasoning are different clocks. Ask about both.
- Get the lender's rule in writing before you buy, not after the rehab.
Run The Deal checks each refi program month by month and shows the best month to refi. For a deeper walk-through, see the BRRRR refinance seasoning rules guide.
Questions
Can I refinance a BRRRR with no seasoning?
Some DSCR lenders will, but many cap the loan at your cost until a set number of months pass. Rules vary by lender, so ask before you buy.
Does seasoning start at purchase or at closing?
Usually it runs from the date you took title, which is your purchase closing date. Confirm how your lender measures it.
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