Finance
What is 'loan seasoning' in Delaware real estate transactions?
AThe process of adjusting a mortgage to account for seasonal interest rate fluctuations
BThe period a lender requires funds to have been in a borrower's account, or the period a property must be held before refinancing — used to verify the legitimacy of assets or prevent mortgage fraud✓ Correct
CA requirement to hold a property for one year before listing it
DThe period during which a buyer's interest rate is locked
Explanation
Loan seasoning refers to the period during which: (1) a borrower's assets must have been in their account before a lender will count them as verified funds (typically 60 days), or (2) the period a property must be held before a lender will consider a cash-out refinance or a new purchase loan. Seasoning requirements help prevent mortgage fraud and property flipping schemes.
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