Comments on: FHA Amends Anti-Flipping Rule

By: Kevin Nolen

Kevin Nolen — Sat, 20 Feb 2010 00:23:30 +0000

Ok guys, I am an investor

I can tell you how it works in CA.

IF you buy the property (doesnt matter if you get a loan or cash, doesnt matter if you buy it short sale, foreclosure, or standard way) for one price, and then lets say you put it up for sale within 90 days, the buyers CAN get an FHA LOAN, BUT, if your purchased was less than 90 days ago, they will base the homes value at what you paid (even if there is a new appraisal). There is no way around this, UNLESS the FHA buyer is buying it as a foreclosed home directly from a bank (basically the bank can flip and make money right away, but we cant-we have to wait 90 days then make a profit)

The old way was FHA would do it if you showed proof of the increase (i.e. 50,000 in receipts for remodel to substantiate $ 50,000 more in price).

I have a deal that FHA won’t close, and I bought it in AUG of 2009!!!! They dont like that I am selling it in FEB of 2010 and Im making a profit!!!!!!!!!!!!!

THIS IS WHY WE SELLERS HATE FHA BUYERS………..USUALLY THEY ARE BUYERS WITH NO MONEY AND SPOTTY CREDIT, AND THEY ASK FOR CREDIT BACKS OUT OF YOUR PROFIT

By: khan

khan — Wed, 23 Dec 2009 03:58:52 +0000

i wanted to find out what 90 days really means. I like a house which some investor bought and had repairs done on Nov 10 2009. Can i give the offer to them and ask to close on Feb 10 2010. Can they start the process and close on feb 10 and that be okay??? or the processing will start after Feb 10 and the loan will have to be closed sometime after that???

By: kelly

kelly — Wed, 16 Dec 2009 21:09:54 +0000

an investor bought a sherrif sale home in April 2009 and has sold it in December 2009, but he never put himself in title or recoreded the sherrifs deed. Do you have to wait 90 days since it just got recorded in December or can you go off the april purchase of the home since the sherrifs sale recognizes the investor as the owner of the property?

By: Peter G. Miller

Peter G. Miller — Mon, 16 Nov 2009 09:31:39 +0000

Jim –

The 90-day rules applies to sales. Check with a local lender for specifics.

Peter

By: James Tlabott

James Tlabott — Sun, 15 Nov 2009 19:56:28 +0000

I had intentions of selling my home and moving to different state for other employement. Placed my house on the market and then was given a raise at my present employment. I wanted to take advantage of lower interest rates, refinance my house and use equity for improvements. Does the 90 prohibition apply?

By: Jo

Jo — Tue, 13 Oct 2009 20:50:00 +0000

I’d like to know if I fall under the exception if I purchase a home before 90 days staight fha if the seller is a non-profit community development origization that purchased it from a shortsale forcloser,, remodeled then I bought if from them is that an exception..can I still buy it before the 90days and do fha in order to get it before the nov 30th dead line.

By: Gogo

Gogo — Fri, 09 Jan 2009 00:06:32 +0000

Sorry Jay,

You gotta wait 90 days like everyone else.

Or try to compile a list of small community banks that do non-conforming residential loans (because they portfolio their own loans) and give the buyer a list of them they can approach as an alternative.

Check the disclosure/legality requirements with an attorney.

By: jay

jay — Fri, 12 Dec 2008 00:46:50 +0000

I purchased a property for cash from a trustee sale. I renovated and cleaned up the forclosure, then listed with a broker on the MLS. I have a buyer who wants to purchase the property using an FHA loan. Do I have to wait 90 days. I am a lawful flipper with clear title to this property. I listed the property at a mid range price below appraisals.
Will the FHA allow us to move forward with the sale or do we have to wait 90 days??
Please Advise.

By: G. Michael

G. Michael — Tue, 11 Nov 2008 16:54:11 +0000

Kelli,
I know this is old news, because you’ve probably long since closed your loan, but it’s a standard procedure on FHA loans to ask for a 2nd appraisal when the value of the home has increased by 100% or more since the last sale. When investors buy and remodel homes, they have to justify the new selling price with documentation including the 2nd appraisal.

By: kelli mays

kelli mays — Mon, 14 Jul 2008 18:36:16 +0000

I have an FHA approval. Was suppose to close today. Then the UW comes back with “FHA requires a 2nd appraisal by another company”

What?!?!?!?1 Apparently, the seller purchased the house for half of what he’s selling it for. It’s been longer than 90 days. There are FOUR (4) GoOD comps in the appraisal. I don’t understand why this is being required!?!??!?! now another appraisal cost of $425. what kind of )&@$)*$ is this???