Comments on: FHA 90-Day Flip Rule Suspended: Lenders Hesitant To Change

By: Janet Lynn

Janet Lynn — Tue, 14 Jun 2011 08:46:14 +0000

My head is hurting from reading all of your comments! I got approved for a conventional loan by US Bank in Feb 2011 and now it is June 2011, and they just informed me that they have an anti-flipping rule. I think it’s all A BUNCH OF CRAP!!!! I have a Fico score of 809, I own 2 houses OUT RIGHT, I own both of my cars and I have to hassle this!!! I’m going somewhere else. THERE IS SOMETHING WRONG WITH THIS PICTURE!!!

By: Ted Akers

Ted Akers — Fri, 12 Feb 2010 14:06:23 +0000

Michael, Because the waiver of the 90 day no-flip rule is very new many lenders are likely to be slow in implementing it, and some may not even over time. Typically I would NEVER recommend sending anyone to Bank of America for anything. But, based on Brians post it may be worth contacting them and maybe Wells Fargo. I am financing a flip right now for a client with BofA as the takeout, although it is not an FHA deal. I am also providing transactional funding on a same-day flip with the client using Suntrust. Again this deal is not an FHA loan. Some of these deals are likely happening because the borrower has a fairly substantial down payment, and it is just my impression but determinations seem to be subjective at times based on specific branches or underwriters. The end of this story is that it may take a fair amount of legwork, but there are lenders out there trying to get their arms around this. Do not take the initial response as this is very new – keep looking elsewhere.

By: Michael

Michael — Fri, 12 Feb 2010 04:31:10 +0000

I was informed as recently as 2/10, that institutions are not lending to buyers such as myself (FHA), on homes that have been recently flipped. Into the inspection process, I learned this late yesterday. It is quite possible that I will lose the home, as the seller obviously is motivated to exit. The home has been inspected twice; it is an exceptional property… Any suggestions about what to do next or where to go?

By: Brian Brady

Brian Brady — Tue, 09 Feb 2010 22:24:25 +0000

It is my understanding the Wells Fargo retail and wholesale will allow the suspension of the 90-day rule

By: Ted Akers

Ted Akers — Thu, 04 Feb 2010 21:59:44 +0000

Brian, thanks – the effort is appreciated. I’ll post here as I get any additional info.

By: Brian Brady

Brian Brady — Thu, 04 Feb 2010 21:39:24 +0000

Hey Ted,

I got some clarification from B of A (on twitter nonetheless) about their policies. I was told they would mirror the new HUD guidelines, for all of their channels: wholesale, retail, and correspondent. This means they are adhering to the limitations as set forth by HUD as well.

They also communicated that the policy could change at any time but, for now, BofA looks like a go

By: Ted Akers

Ted Akers — Thu, 04 Feb 2010 20:07:06 +0000

I am doing two deals for clients. I just confirmed that BofA guidelines allow it at 80%, with some credit score requirements for the buyer. This branch will not fianlize underwriting or order the appraisal until the investor is in title and then will require the contract to be re-executed after title is recorded in the investors name. We are going to finance this purchase and assume a 14 day turn allowing for the appraisal time line. Anothe client is confirming Suntrust for a shorter timeframe and possibly same-day flip, although I have not yet confirmed the actual time line. I agree with Brian – if we all post here any knowledge of conventional or portfolio lenders who will waive the 90 day title seasoning we all win – and BP gets even more kudos.

By: steve

steve — Thu, 04 Feb 2010 16:15:01 +0000

Please keep us posted. Thx

By: Ted Akers

Ted Akers — Wed, 03 Feb 2010 16:32:29 +0000

Thank you much Brian.

By: Brian Brady

Brian Brady — Wed, 03 Feb 2010 16:25:13 +0000

I tweeted to BofA to get their policies for their retail and wholesale channel today. I heard back from them and expect to have an answer by the end of this week.

I await answers for Wells Fargo and Chase policies, too

By: Ted Akers

Ted Akers — Wed, 03 Feb 2010 16:22:13 +0000

Cheif Denney, would you mind sharing lender names if you have found either portfolio lenders or conventional lenders that have been willing to waive the 90 day flip restriction? One I am aware of is a jumbo deal we have been working in Denver with USAA as the take-out. We all think of them for insurance but they also do mortgages. The restriction is that they service the military community, but it is a broad definition that includes some relatives and even ex-spouses. I am working another deal where Suntrust is a take-out within a few days of the REO purchase. Suntrust used to not have flip restrictions but went away from that policy 2-3 years ago. I am not clear yet whether this is an isolated branch or particular underwriter waiving due to a strong buyer. I have a third deal where my client is using the dreaded Bank of America. I do not have confirmation yet on this transaction, but have heard that BofA can have different parameters depending on branch or underwriter, and I suspect the strength of the buyer. If we could all share thoughts on portfolio lenders or those willing to waive the 90 day rule we would all benefit, likely without overlapping in the others territory. The primary benefit that makes BP so much more valuable versus all the other sites and forums is its members willingness to share and educate.

By: Brian Brady

Brian Brady — Wed, 03 Feb 2010 14:05:03 +0000

I agree that it doesn’t make sense to jump to conclusions, this early in the game. Please note that I’m offering my observations, not opinion.

Would those of you finding lenders who are not imposing the 90-day flip rule please post them here so that investors looking to flip property might have some resources?