Question Details

Joe Houghton, Real Estate Pro in Minneapolis, MN

My investor buyer wants to buy a home and sell it right when he closes. Is it correct that he can't sell to an FHA buyer for 90 days from?

Asked by Joe Houghton, Minneapolis, MN Wed Oct 6, 2010

closing? Flipping

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5
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That is correct. That one put a damper on things for many investors, but it was for the better... I think.
1 vote Thank Flag Link Wed Oct 6, 2010
Are you not worried about fraud here? If he's selling it the same day, then he hasn't put any repairs into the home and it was never on the market. Sounds a little fishy.

Stacy Carter
Associate Broker
Better Homes & Gardens Real Estate Metro Brokers
0 votes Thank Flag Link Wed Oct 6, 2010
My experience has been that you can get an FHA loan, but your direct lender may charge you a bit more because they are limited as to whom they can sell it on the secondary market.
0 votes Thank Flag Link Wed Oct 6, 2010
It is even longer with a conventional loan. I assume that he is planning to do it as a flip and sell it for a profit. If he can get the right buyer, and find a credit union or small savings bank, they might allow the flip if he can justify the deal.
0 votes Thank Flag Link Wed Oct 6, 2010
Hi Joe: I have done a lot of research on this topic because I have both investors and FHA buyers, I wrote a blog about it on Active Rain, and here it is:

http://activerain.com/blogsview/1750399/how-can-investors-ac…

Good Luck!
~~~~~
0 votes Thank Flag Link Wed Oct 6, 2010
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