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Updated over 9 years ago on . Most recent reply

Can You Fix-n-Flip a Fannie Mae Homepath Property?
I have a question for you smart ones of Biggerpockets.
Fannie Mae has this program called Homepath.
They're selling CHEAP but the main issue is they impose a DEED RESTRICTION so much so that you are NOT ALLOWED to sell the house within 12 months of purchase.
One solution we have around this issue is RENT TO OWN - buy the house, fix it and then sell it rent to own. It will take 12-18 months for the title to transfer since the tenant/buyer will take about that time for him or her to qualify for a mortgage.
However, today, I encountered a Homepath house that is ideal for FIX-N-FLIP. My sweet spot for rent to own in my market is the ARV range of $150K to $250K. Above $250K, I get less tenant/buyers but more buyers. The house I am looking at right now has an ARV of $450K but I can get it cheap - only $250K (it needs about $20K repairs).
I know and have heard of selling the LLC but this really does not work for end buyers who need a traditional mortgage.
I am stumped.
Any creative work around this deed restriction of Fannie Mae Homepath?
Thanks in advance BP Nation!
Most Popular Reply

The deed restriction for investor purchases is only 90 days where you cannot sell the property for more than 120% of the purchase price during that period. The 1 year restriction is for owner occupants only