Leverage Loan Seasoning to Refinance Smarter

How Private Lending Helps Borrowers Season Loans—The Key to Faster Approval & Better Terms

When it comes to real estate investing and refinancing, timing matters—especially when it comes to a concept known as loan seasoning.

Loan seasoning refers to the amount of time that has passed since a property was purchased or transferred into a new ownership entity. For lenders—particularly banks and traditional financial institutions—seasoning is a sign of borrower stability.

Most banks want to see 6 to 12 months of on-time payments before they’ll approve a cash-out refinance or a long-term fixed loan. This “seasoning period” demonstrates that a borrower can manage the property and debt responsibly.

Why It Matters for Investors

For real estate investors, this time window can make all the difference between qualifying for a great long-term loan—or getting stuck with higher rates or limited terms.

That’s where private lending leverages options.

At MGM Private Capital, we specialize in short-term bridge loans that help our real estate investors get into the property fast, and position themselves to refinance at the best possible rate should they decide to keep the property in their portfolio.

A Real-World Example

We recently had a client who secured a short-term loan from us to purchase a property they intended to update and hold as a rental. They made smart improvements, held steady with rental income, and made every payment on time.

Just last week, they refinanced into a long-term fixed loan with better terms—and are now holding the property as a profitable rental with positive cash flow.

Because they had seasoned the loan properly, they had more options, lower rates, and a better long-term position.

Need flexibility before you refinance?

A short-term loan from MGM Private Capital can help bridge the gap. Contact us to learn how we can support your next investment.

At MGM Private Capital, we’re actively supporting real estate investors across Southeastern Wisconsin—providing funding for quality deals and offering opportunities for capital partners to grow alongside us.