I have a Question that I hope is easy for somebody...
I am working on a deal where I have leased a house with a purchase option. I am hoping to flip it to a retail buyer who will get a FHA insured loan. Is this possible or does it violate the HUD anti-flipping rules?
I have recently heard that I can't simply assign or double close a deal with a borrower getting a government insured loan because I'd have to own the house at the time the contract is written, before the buyer makes application for the FHA loan... please help me out if you know.
You could just assign your contracts to the new tenant/buyer. The non-refundable option consideration would be your assignment fee, and you would automatically be released from both the lease and the option. The new T/B doesn't need to secure a loan to get into the deal... So whatever loan he eventually gets shouldn't matter (I don't think). @Brian Gibbons what do you think?
the cleanest way to do this is to
1 letter of intent between u the Rei and the seller
2 lease and option from seller to ur llc the Rei
3 market for suitable tenant Nuer w 3 % prion fee
4 have tenant sign a lease and option with seller plus option release fee doc, all 3 sign this , u the Rei , landlord seller and tenant buyer
5 have seller sign the paperwork, TBer gets keys, you get the 3 % fee
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