House flipping laws?

3 Replies

Some REO banks and Home Path have 60-90 days deed restrictions.

I know, first hand, that some underwriters will not fund a home that was purchased less than 6 months ago and now is being sold to a retail buyer.  Others want a 2nd appraisal in this case as well.

Other than that, I'm not aware of any other restrictions.

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As previously stated, some foreclosures will stipulate at the time of purchase that you can not transfer ownership for a certain timeframe. Additionally, Some lenders will not loan to your buyer if a property that has recently transferred title (usually 90 days).

However, FHA (who originally came up with the 90 day rule) has a waiver in place to allow FHA loans within 90 days of previous title transfer... I think the waiver is currently valid through Dec 2014...