How transactional funders handle a C buyer whose lender requires seasoning

The problem sits earlier than the seasoning rule. Transactional funding is priced and papered to be out for hours, and a conventional or DSCR loan for the C buyer takes 30 days to close. Those two clocks never meet on their own. Something has to carry the property in between, and a few hours of transactional money is never it.

The guideline language I've read on flip resales tends to key off both days held and how much the price jumped, and it varies a lot by investor overlay on top of whatever the base program says, so there's no single 90 day rule to plan around. The only version that helps you is the C buyer's actual lender putting their policy in writing before anyone papers a funder. Vellum, that's the answer to your question too, they don't meet, which is why the file died.

Transactional funding is built on one assumption: the repayment money is deliverable in the same closing session. Take that away and the product doesn't apply. A C buyer whose lender restricts recent transfers or won't fund without a seasoning period isn't a same-day repayment source, so the wholesaler's choices are a bridge or short-term hard money loan that carries the property for weeks or months and gets priced like one, or an assignment instead of a double close where assignment is still permitted in that state, or a different end buyer. What can't happen is stretching an hours-long flat-fee product across a 30 day mortgage timeline.

Which is why in practice this method leans on cash buyers and on hard money lenders whose own guidelines don't care about chain of title yesterday. Seasoning and closing-instruction language are set lender by lender and change, so the wholesaler should have the C lender's policy confirmed in writing before the A-B contract is signed, not after.

The thing that bites funders even with a cash C buyer: proof of funds is not funds. A bank letter, a screenshot, a statement dated last month, none of that repays anyone. The control is confirmation from the escrow officer that C's money is in the account and disbursable, obtained before the A-B advance goes out. Funders who skip that step are making an unsecured bet on a stranger's wire, and they find out on the one file where the buyer's money was actually still tied up in another closing across town.

So the credit decision is really on C's escrow deposit and on the escrow officer's confirmation, and the wholesaler is close to incidental to it. That reorders who I'd want to know in that transaction.