Some banks are now creating their own guideline to the 90 Day Flipping Wavier. Beware if you have one.

By
Mortgage and Lending with Mortgage Resource Plus NMLS LO#138228

We have just seen a change that some of the banks are enforcing.

The FHA flipping rule that went into affect on 2/1/2010 states that if a seller lists and sells a house before 90 days of him purchasing the property and he sells it for over 20% of the seller's acquisition cost. The bank will require 2 appraisals as well as an inspection of the property. We just complete one and it did go well.

However, be aware that some banks starting Monday 3/22/2010 will not accept a purchase agreement with a sales price of more than 20% of what the seller bought the property for.(Even with the improvement to the property they are still using only the original sales price plus 20%) 

So if you have someone that wants to sell the house for more than 20% the seller will have to wait until day 91 once again.

Remember, this is not with all banks so check with the purchaser's bank first to make sure that they will do the loan before you go through the whole process to find out they won't approve it.

As we say EMBRACE CHANGE!!!!!

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Rainer
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Cynthia (Cindy) Vogt
Long & Foster Real Estate - Abington, PA

Thanks for the heads up.  I was not aware that this was going on and thought the 90 day "lift" had no contingencies.  Thanks again.

Mar 19, 2010 07:12 AM #1
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Rainmaker
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Natalie De Leo

Former Realtor now Mortgage Consultants
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