Flipping?
Hi,
I close on my first rehab this friday, but recently I've been told that lenders won't let flips happen anymore... This concerns me, because I had planned on selling the property to an owner occupant in 1-2 months...
Any input?
Thanks.
Check on seasoning with your lenders(minimum amount of time that a person is in a loan)...every one is different. (Usually will be 3-6 months minimum seasoning)
As for the word "flipping"...The real definition is getting an appraiser to increase the value of a property beyond the real market value and securing a loan through that value.
Just because you are taking control of a property and getting rid of it fast, doesn't mean you really are flipping a property.
Check with your local lenders on their guidelines.
Those are FHA rules...
However much of the prime loan area tend to follow FHA guidelines. I have not yet had a problem.
If you give a before, during, and after picture, description, and cost associated with each repair, the bank won't have a problem. This doesn't have to be long or hard....just enough to show the bank what you were doing. Sometimes receipts are necessary. It mostly depends on your organization and professionalism.
Don't worry...just document well. Many banks don't even have seasoning requirements. And hardly anything in subprime loans