Selling a Flip to VA Buyer

[Drey Taylor]

I'm ready to sell my flip property where most of the buyers are using FHA/VA loans. I'd prefer to avoid FHA, so I'm looking strongly at one of the VA offers I received. According to my broker's favorite loan officer, VA flip rules are the same as conventional. Is this true?

Here's what she sent on VA/Conventional flip rules:

And for good measure, here's what she sent me for FHA flip rules:

Anyway, I wanted to see if I could get some independent verification that the VA process isn't going to be as cumbersome as the FHA program. Any insights on how I can follow-up with the broker on a VA loan to ensure the process will run as smooth as possible is welcome as well.

[J Scott]

From the standpoint of the rehabber, selling FHA and VA are pretty equivalent these days. Both will require some hoops to jump through -- additional documentation, additional substantiation of value, etc. -- but either can be accomplished pretty consistently if you have a GREAT mortgage broker handling the transaction who understands the rules and can communicate directly with the underwriter.

So, I would suggest you focus on finding a GREAT mortgage broker, and then not worry so much about whether your buyer is FHA or VA.

Now, all that said, if I had to choose, I'd rather have an FHA buyer than a VA buyer, as VA tends to be a lot more picky on inspection issues and the underwriters tend to be a lot more finnicky. In my experience, VA loans typically take an extra week to close, all other things being equal.