Buying a home to repair, upgrade or totally change is an exciting challenge. You want the biggest pool of buyers possible when it comes time to sell the property which will include those who may purchase the property using an FHA loan. You may have even used a 203k FHA renovation loan to purchase the property, but that is for a different discussion.
Thanks to James Roberts and Luke Sorensen with Security Home Mortgage in Orem, for their continued education concerning the lending process and making it as smooth as possible.
So whether you have purchased a property to flip or you are a buyer looking to purchase a property and it is a flip of the sellers here is some important information concerning FHA restrictions:
1. FHA does not allow a loan on a property where the seller acquired the property within the last 90 days. All other loan programs are fine (based on the qualifications of the buyer, the appraised value, etc.).
2. Have a title company check the county records for the date when the sellers name was recorded on title – don’t go off a settlement statement, MLS sold date or verbal communication.
3. It is not the Settlement Date that needs to be past that 90 day minimum it is the contract date, so depending when the offer is made, make sure that after any negotiations the contract may not be signed and dated until day 91 and then the FHA loan process may begin.
If you have any questions get with a lender, or feel free to contact me and I’m happy to help.
Sincerely,
Brian Olsen – Wallsburg World Realtor
M: 801-318-3108
E: bolsenrealestate@gmail.com