Beginning in 2015, FHA made changes to their property flipping guidelines.........
As of 1/1/2015, FHA requires all properties to be owned for at least 90 days before they are eligible for FHA financing; and properties that are resold within 180 days of the original purchase date will be required to obtain a second appraisal if the new price is more than double the original purchase price.
HOW YOU CAN USE THIS:
- Even with this change, you can still help clients looking to quickly flip a property, as there is no waiting period for conventional loans.
- With conventional loans only requiring 3% down, FHA is likely not the best option for buyers anyway, unless their credit scores are low.
- Remember your cash buyers can also refinance up to 85% of their home’s value immediately after closing. This means your buyers can use cash to get offers accepted, then refinance to access that cash for another home purchase!
Contact us with questions...we’re here to help your business!