Greenville, SC · Member since 2017 · 4 posts · 0 votes
Hello,
I'm a newbie here and I was trying to find the answer to this question but I have been unsuccessful. I was wondering if there is a 90 day (or any day) holding period for real estate cash purchases in the state of South Carolina? Meaning, do I have to wait in order to sell a property if I were to pay in cash (no financing)?
We have run into situations where we sell to a flipper and somehow it is finished and sold within 90 days. Banks will generally not approve loans if the house is selling for 20% or more than the purchase price IF it was sold less than 90 days earlier. HUD and VA are the same way.
We have dealt with this twice in the last six months. One was a local bank and they exempted the buyer from their own rule. One went under contract in less than 90 but closed after the 90 days was up. Keep in mind that both of these were sold to retail buyers.
If you are selling to a flipper or an investor it won't be an issue.
We have run into situations where we sell to a flipper and somehow it is finished and sold within 90 days. Banks will generally not approve loans if the house is selling for 20% or more than the purchase price IF it was sold less than 90 days earlier. HUD and VA are the same way.
We have dealt with this twice in the last six months. One was a local bank and they exempted the buyer from their own rule. One went under contract in less than 90 but closed after the 90 days was up. Keep in mind that both of these were sold to retail buyers.
If you are selling to a flipper or an investor it won't be an issue.
We have run into situations where we sell to a flipper and somehow it is finished and sold within 90 days. Banks will generally not approve loans if the house is selling for 20% or more than the purchase price IF it was sold less than 90 days earlier. HUD and VA are the same way.
We have dealt with this twice in the last six months. One was a local bank and they exempted the buyer from their own rule. One went under contract in less than 90 but closed after the 90 days was up. Keep in mind that both of these were sold to retail buyers.
If you are selling to a flipper or an investor it won't be an issue.
Best of luck
I think you are confusing 2 different scenarios:
-The 90 days that you cannot sell a property for more than 120% of the purchase price is a FNMA Homepath deed restriction when you purchase the property and has nothing to do with a bank approving a loan. HUD and VA foreclosures do not have the same restrictions and can be resold immediately
-IF you are reselling to a buyer obtaining an FHA loan, the contract may not be signed until day 91 after the deed has been recorded. This is commonly known as the "Anti-Flip Rule". VA and FNMA do not have the same restriction although individual lenders may have overlay requirements