FHA Flip Rules - Educate Your Buyers & Sellers! *Must be completely arms length – no identity of interest between seller, buyer or any party involved in transaction *No previous flipping in the past 12 months *Has to be marketed open and fairly If sales price is 20% or more over the acquisition cost then: *Supporting documentation and/or second appraisal (all lenders I know are requiring 2nd appraisal) – borrower can’t pay for second appraisal *Home inspection ordered by lender – Lender pays for home inspection but can charge the borrower for it These apply to flips sold within 90 days of prior purchase. The clock starts when the deed transfer takes place and goes through the signing of the contract to purchase. If you sign a P&S to purchase a flipped property within 90 days of the current owner’s purchase, this is a flip and these rules apply.
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Central Maryland
very timely information. My investor is ready to list only 6 weeks after purchase.
May 24, 2011 02:37 PM
E Mortgage Capital, Inc. NMLS 1416824 - Roseville, CA
Mortgage Loan Officer NMLS #281609
You have to know what financing is available and what additional rules apply if you are going to properly market your listing.
May 24, 2011 02:54 PM
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC
Kathleen
Thanks for sharing the new FHA flipping guidelines.
Good luck and success.
Lou Ludwig
May 24, 2011 03:09 PM
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker
Flipping, Flopping... it will probably not work!
Great Video and Great Post, Kathleen.
May 24, 2011 04:45 PM
Glendale, CA
Kathleen - Excellent information and tips about FHA flip rules to educate byuers and seller. Thank you for the detailed quality blog.
May 24, 2011 05:02 PM
Sposato Realty Group - Killingly, CT
Realtor
Great job informing us all Kathleen!
This is something I as a Realtor was not aware of and will definitely be reading up on it to inform my buyers & sellers.
Again, thanks for a great post to help keep us all up to speed!
May 24, 2011 11:10 PM
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor
Hi Kathleen - Bummers. That topic is in my draft blog. Are you peeking at my drafts? :) Well written and informative blog.
May 24, 2011 11:13 PM
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate
❦ Kathleen, great way to get the word out for FHA guidelines and to show your expertise!
Pamela
May 24, 2011 11:49 PM
Kathleen Cooper, Sposato Realty Group - Worcester, MA
Sposato Realty Group - Broker Owner
Thanks everyone! Please spread the word!!!
LOL Conrad - Not yet, but that's a good idea! ;) You need to still post it. The more the word gets out there the less of an issue this will become. Still working on some dates/times for you. Talk to you soon!
Sincerely,
Kathleen
May 25, 2011 01:57 AM
Rainmaker
389,207
389,207
Kathleen Cooper
Sposato Realty Group - Broker Owner
Comments(9)