Flip Rule Affecting Conventional Loans?

By
Real Estate Agent with Berkshire Hathaway Home Services Florida Network Realty BK 3030920

I know we have all heard about, or, experienced, first hand what can happen with FHA buyers and FHA loans on investor owned homes and certain timeframes, and/or certain improvements to the property that put the property value at a certain percentage over purchased value.

Most of us know that a second appraisal is required, and the seller will typically pay for this, as they are making more on the sale of the house.

What is new to me today, is this is affecting a current conventional loan, and the timeframe for flipping with convention is more restrictive than for FHA.

Has anyone else run into this???

Posted by

Carol Zingone is a full service Broker Associate proudly affiliated with Berkshire Hathaway HomeServices Florida Network Realty in Atlantic Beach, FL.  I help buyers and sellers locally, regionally, and internationally.  With hundreds of happy buyers and sellers over the course of my career, I'm thrilled to help first time buyers, military buyers, seniors, investors, 1031 exchange properties, short sales and REO's.  I have spent hours honing my expertise, including the designations of: Graduate Realtor Institute (GRI), Loss Mitigation Certification (LMC) , Short Sales, Foreclosures, REO's, (SFR), and Senior Real Estate Specialist (SRES).  I pride myself on providing excellent expertise to all buyers and sellers. Search the MLS via www.carolzingone.com  for Jacksonville and area listings!

 

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Tags:
fha
conventional loans
flips
timeframes

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Rainmaker
184,413
Matt Brady
New American Funding - Del Mar, CA
Lending With Competence And Character

As in most cases, FHA loans are more lenient in regards to time-frames. Conventional loans will always be more restrictive since the funds are not guaranteed by the Gov.

Jun 02, 2011 11:04 AM #1
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Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

I have not run into this but I will be coming back to read of other's experiences with this.

Jun 05, 2011 10:37 AM #2
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Rainmaker
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Carol Zingone

Global Realtor Based in Jax Beach, FL
Questions About FL, Beaches Homes? Ask Me!
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