Real Estate Consultant · Minneapolis · Member since 2009 · 60 posts · 8 votes
Purchased a fixer and someone offered me $15,000 more to buy it as is. Since I just closed on the property - how can we get around FHA's 90 day seasoning requirement.
I just did this on another property - bought an REO and sold it immediately. My buyer used Wells Fargo conventional loan and they were reluctant to finance the deal. Wells would only finance up to the amount I paid for the REO - requiring my buyer to come up with additonal down payment.
If your flipping or rehabbing and reselling in less then 90 days how do you finance the resale - without using hard money?
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
17y
Originally posted by Tim B:
Reluctant to do a short lease - buyer moves into property prior to closing then nit picking property and backing out of purchase.
I have the same concerns about doing this, but you have to decide if this is a better or worse alternative to waiting 90 days...
Btw, I highly recommend checking with the title company to make sure that they record the deed quickly...I had a situation this week where I found out the title company screwed up, and still hasn't recorded the deed after more than 2 months.
I have an offer on the property, but it's FHA, and the 90 day clock STILL hasn't started ticking...
Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
16y
That's true Will, but that's pretty much the same requirement for 91-180 day resells. Validation of the increased sales price means a second appraisal and documentation of any repairs you did, if any.
You also have to have a property inspection, but that is pretty much a no brainer in a retail transaction.
Phoenix AZ · Member since 2010 · 16 posts · 1 vote
15y
Hey everyone, first post here and I hope not the last. I'm actually running into an issue now, after flipping 10+ homes since February on FHA loans. Now my lender (I'm in WA state) that I've used for all of them is denying them because they are saying PMI has a 90 day seasoning rule, but they can still underwrite the Fannie/Freddie loans.
To me this doesn't make a lot of sense, because I thought Fannie/Freddie provided their own PMI on the loans they were doing.
Anyone run into this? Any lenders you can reccomend in WA state? I messaged all the local credit unions who I thought may be interested in portfolio loans to see if I can find a new preferred lender.