Seasoning

Definition

The waiting period lenders require after you acquire a property before you can refinance or apply for a cash-out loan—basically lenders' way of preventing immediate equity extraction.

Example Usage

We closed 6 months ago, so we've met the seasoning requirement and can now refinance to access our equity.

Origin

Banking term referring to allowing time for transactions to stabilize

Fun Fact

Seasoning periods prevent fraud and speculation but also trap homeowners with bad loans while they wait to refinance.

Source: Mortgage Bankers Association Lending Standards

Related Terms

Intermediate

ARV

After Repair Value—the estimated market value of a property after renovations are completed, used by flippers and lenders to determine how much to invest. It's the number that makes every renovation look profitable in your spreadsheet, before reality intervenes.

🏠 Real Estate

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love letter

A personal note from buyers to sellers describing their emotional connection to the property and how they'll cherish it forever. They're increasingly discouraged or banned due to fair housing concerns, but still occasionally work to sway sentimental sellers.

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assess

The formal process of determining value, typically involving clipboards, spreadsheets, and someone walking around your property looking concerned. In real estate, it's how governments decide how much they can tax you; in business, it's how managers justify their existence by evaluating everything constantly. The corporate cousin of "let me take a look at that."

🏠 Real Estate

Intermediate

burden

Any claim, lien, charge, or liability attached to property that diminishes its value or restricts its use—essentially the baggage your real estate comes with. These encumbrances can include mortgages, easements, restrictions, or unpaid taxes that follow the property regardless of who owns it. Think of burdens as the property's credit score problems that become your problems.

🏠 Real Estate

Beginner