FHA Home Loan 90-Day Flip Financing
Recently, the FHA flipping rule was waived. So FHA's requirement that homes must be owned by a seller for at least 90 days prior to reselling in order to qualify for FHA mortgage insurance.
This waiver makes it much easier for home buyers to use FHA home loan programs to purchase REO properties as well as privately sold properties that have been held for less than 90 days.
In the Las Vegas market, there are quite a few private parties and entities purchasing homes at the trustee sale or on the open market, improving the property, and then selling them quickly thereafter.
While many other Las Vegas lenders no longer offer financing for these homes, WJ Bradley Mortgage Capital Corp. continues to not only offer to finance an FHA home loan on a flipped property, but embraces these types of transactions. The guidelines for a flipped property are below.
We understand that there are concerns with FHA flipping and rapid property appreciation, so we do extra due diligence with these properties and there are certain restrictions in place including:
- All transactions must be arm’s-length.
- If the sales price of the property is 20% or more over the seller’s acquisition cost, justification must be made for the increase in value. Two appraisals and a home inspection are required.
- Repairs or renovations must have been done to the home by the current seller to account for the increase in sales price.
We remain committed to helping Las Vegas buyers obtain FHA home loan financing that meets their particular needs.
If you need assistance with an FHA Home Loan on a flipped property, please call or email me today!