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Do you want to buy a foreclosure property that is already completely remodeled? Well, FHA is trying to make it easier for you to do just that. They just temporarily extended the anti-flip waiver again, until December 31, 2012.
Check out today’s video:
The FHA anti-flip waiver is supposed to allow you to actually purchase a newly remodeled home from an investor who just purchased the property less than 90 days ago.
Sounds great, right? Well not so fast. Just because FHA says it’s not a problem doesn’t mean every lender feels the same way.
There are a lot of companies that have major overlays to either prevent this waiver or a big increase in the documentation needed to do this type of loan. So before you buy a newly flipped house with your FHA loan you will need to find out when the seller purchased the property and the amount of repairs done to the property. This will make a big difference to your loan originator on what lender he or she can lock your loan with.
Once you know for a fact that the loan originator you have chosen has an investor who can do these type of loans you should be good to go, and this can be a great way for you to buy a newly remodeled home without having to worry about the hassle of doing the remodel yourself.
Can’t find a lender in your area who can do these loans? Contact me, and I will help you out.
Now if the seller has already owned the property for over 90 days, there is no need to worry. You can purchase the property like the normal FHA transaction.
I do want to point out that USDA, VA and conventional loans do not have any seasoning issues or time frame after the investor bought the property. Technically, FHA doesn’t either, but like I said, overlays could be a killer with your lender. So if you can’t do FHA, look at your other options.
Keep this in mind when you are looking at newly remodeled or flipped properties.
Let’s change the way people shop for a mortgage…forever!
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002