90 day flip rule???
I've come across this on the last few flips and wanted to see if anyone has any ideas of a way around the following example.
Buy a home on January 1 with the intent to renovate and flip it.
Complete the renovation by February 1st and put it on the market.
Have a signed purchase agreement by March 1st and the buyer then applies for the mortgage (60 days or so from the day i buy it to having it under contract to sell).
Since the purchase agreement was signed less than 90 days since I took title the lender asks for 2 appraisals and a home inspection and requires everything on the home inspection to be fixed. The home inspection isn't typically an issue but they demand the seller to pay for the second appraisal around $500.00).
I know FHA removed the flip rule years ago but I see most lenders still asking for this. So is there another way around this or should I wait 90 days to put the house on the market or go through the hassle and expense of paying for an extra appraisal and having to fix every little nitpicky thing on the home inspection?