Do I have to wait 90 days after a home is flipped for FHA mortgage?
I applied for an FHA mortgage. The home my wife and I are looking to buy was bought by a realtor and flipped in early November. It's a beautiful home. Everything is brand new, so there's no reason to think there's something shady about it. How would my loan officer know that it was bought in early November? I wouldn't be looking to close until March.
I'm being told that I can't even apply, until the 90 day period has passed. The title search wouldn't occur until well after I even apply! I'm doing the title work with someone other that the loan officer's company, so how would he really know?
- loanmasteroneLv 78 years agoFavorite Answer
FHA has waived this rule, they no longer require you to wait 90 days before applying for an FHA mortgage loan program. Even though FHA no longer have this requirement a few of the major banks and lenders still use this as a guideline. You may google 90 day FHA rule, many site would pop up and inform you of the waiver by FHA of this change.
This might be an investor property,most investors would want to immediately relieve themselves of an investment property. In many cases an investor would lower the purchase price on a property in order to make a profit and not have this investment property on hand. The theory is that it would be better to make a profit on the investment property as oppose to holding onto the property and paying the mortgage, up keep on the lawn and possible vandalism.
You might make an offer as any other buyer. The appraisal would determine value of the property a lender would lend on, not the investor. Investors normally make better sellers as they have no feeling or memories in the property, their motivation is to sell the property as soon as possible and making a small profit on their investment.
I hope this has been of some benefit to you, good luck.
- acermillLv 78 years ago
How would they really know ? Get real. All sales of real estate are recorded in the local land office/register of deeds. The date of the last purchase/sale will be very clearly recorded. If you want a FHA loan on a flipped property, you have NO choice but to follow that 90 day rule.
- glennLv 78 years ago
FHA has rules and this is one. Pick your own local loan officer and they will tell you this also.
It may be a wonderful house- but it won't be a great price- you are paying top dollar and the new stuff is not the top quality. You will notice the quality a few months or years after moving in. But the FHA rule is not a fake- it is just a rule.
- mildred fLv 78 years ago
Every house has an Abstract, a history of that house. Never heard about the 90 day rule.
NEVER buy a house unless you have had it inspected. The contact should list this as a contingency. DON"T buy a house unless this is done, no matter what you think about the house. It is too easy to slop things in and cover stuff with drywall.
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- Go with the flowLv 78 years ago
Does not matter.
That realtor probably bought the home in cash - common.
From experience: Realtor owed homes were pushed hard by realtors.
When you do the math, they were ALWAYS the most per square footage.
Yes, they are pretty with the flowers, etc. They know what they are doing.
So be very, very careful.
Remember, the bank will do an appraisal.
Do not expect an honest appraisal on that home from the realtor owner.
You cannot make a mortgage for over the value of the home.
Buying a home from a realtor that she owes, is like buying fire from the devil.
- Beverly SLv 78 years ago
A title search will show all sale dates on a property.Source(s): Mortgage lender.