Buyers Beware: Investors Flipping

With more investors buying and quickly flipping homes these days it is important to check how long a seller has held title.  When a property is being "flipped" and the seller has not held title for a minimum of 90 days, buyers will not be able to get FHA financing within the first 90 days.  Conventional and VA do not have the 90 day rule BUT, nearly all VA and Conventional lenders have internal rules stating that they will not lend within the first 90 days either. The few lenders that do allow this will typically require 2 appraisals and scrutinize the entire loan for possible red flags.  It is important to note that NO documents can be dated prior to the 91st day. This includes purchase contracts, earnest deposits, title reports, appraisals, etc.