Flipping, Can My Buyer Get Financed?
I am new to REI and am trying to work with a mortgage broker to refer my buyers to. She has informed me that almost all banks will not finance a property that has been flipped not even her sub-prime lenders. If this is the case it seems that the only way around this is to lease the property to the buyer for 6 months and then let them get the financing?
Is this the only way?
:-?
Hello, I'm new at rei myself , but I am also a mortgage broker. I know that there are a couple mortgage company's out there that are starting to not require seasoning the property, she just gotta find them.
Thanks for the info. That's just it, I was hoping to find someone to lead me to those type of lenders here or at least point me in that direction. Usually buyers stop after they're told they can't get financed by one broker.
Thanks,
Lynn
I have recently purchased a property just after sheriff sale with money obtained through a short term (3 month) loan. Total cost of that money was $99,000 (principal, interest and points). I have found a lender that will refi the property and give me cash. Property appraised at 153,000 and I am able to borrow about 115,000. I just settled on the original purchase on Sep. 21 and will settle on the refi on Nov. 21. The lender says that there is no seasoning requirement with Fannie Mae lenders. I can put you in touch with the lender and even if he doesn't loan money in your state he can probably tell you what to ask for. It took me 6 or 7 mortgage companies all telling me they can do anything I needed only to come back and tell me that they couldn't do it because of seasoning before I found this guy. I haven't settled yet but I have confidence it's gonna happen.
Bill
I have also been told by a few lenders that seasoning is required, but it seems acbill has found some lenders who are willing to ignore that ! Please let me know who those lenders are because I am also in NJ !! Thanks
VA, Chase and SunTrust are some that I have personally sold to having owned less than six months. In general, the conventional lenders (not sub prime) have fewer seasoning requirements.
Brenda
South Trust Bank is aggressively advertising no seasoning on their loans.
[addsig]
Thanks for the no seasoning leads. This is such a great site.
Lynn
Another option would be a double close 8-)
Greyhair,
That's exactly what the mortgage broker said that the banks she deals with will not do. they will not do a simo because their was no seasoning.
Lynn
A double close does not solve seasoning issues.