Financing in 19053>Question Details

Tjtj1111, Home Buyer in 19053

Does anyone know of a lender that will do an FHA mortgage on a home in Bucks that had a previous deed transfer less then 90 days?

Asked by Tjtj1111, 19053 Thu Jan 12, 2012

bought at $50000 selling for $220000 rehab

0 votes Share Flag Financing in 19053

Help the community by answering this question:


Hello TJ,

Did you ever get this issue resolved?

Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
NMLS ID 143960
0 votes Thank Flag Link Wed Feb 29, 2012
I'd wait until 90 days has passed and even 180 if possible. From my experience, if indeed a lender can do it, you will need two appraisals, receipts of work done, explanations, etc . I wouldn't assume it will be easy or that it can be done for sure. I'd wait until at least 90 days has passed, especially with the high increase in value.
0 votes Thank Flag Link Sat Jan 21, 2012
Your loan is not difficult to do. The most an underwriter will ask for are receipts of the work done. If the seller is a flipper that does their own work they still bought supplies. Also the appraiser can show the previous condition (before rehab) from the previous listing on MLS.
0 votes Thank Flag Link Sun Jan 15, 2012
With the buy price at 50K and selling price at 220K this will raise a red flag. Conventional usually likes to see no more than a 120% increase and at least 90 days pass (so if 50K then 60K would be 120% so if you sold for 110K that would be better. Even if you sell this home 9 months from now or a year a lender still may question this.
0 votes Thank Flag Link Fri Jan 13, 2012
Flip guidelines changed a little recently and every different lender may handle them differently. However, here's the rules.....FHA requires two appraisals if the deed transfer is 90-180 days but as long as the repairs justify the increased value and the appraiser makes comments, etc you should be fine. Sometimes the lender asks the seller to give a specific list of what was done as well.

Regarding a conventional loan you usually need at least 90 days and depending on the underwriter can possibly even do the transaction in less than 90 (with in depth comments on repairs from seller, appraiser, etc). Also if the buyer has good credit, more money down this will help your chances as well.

Read the blog I posted on Trulia (also copied below). My boss just closed a coventional loan where deed treansfer was less than 90 days. I closed a conventional loan just last month with a deed transfer 4 months. Re: FHA 3 months is needed...just try to wait until that time frame is up (3 months) before you go under contract and you will be fine. My company handles flip transactions pretty well..... my blog is below, and my contact information below that. Call my cell 610 457 7262 or email me to discuss in more detail.

Flip transactions can be complicated. Generally, a "flip" transaction is where a private investor has purchased a property at a discounted rate, then attempts to resell the property (after making repairs) in order to make a profit. Unfortunately, Fannie Mae and FHA rules can differ regarding these transactions and each lender can also handle "flip" transactions differently. The lender may require two appraisals, additional down payment requirements, proof of upgrades, etc. Some lenders won't even do certain deals. Here are a few tips that will help the transaction go smoother:

‎1. Agents and clients should inform the lender immediately if the house being purchased was purchased within the last year.

2. Try to never write a purchase contract within 90 days of the most recent title transfer on a property

3. Get the titlework and appraisal back on the property as soon as possible so the lender can view the appraisal and titlework in order to make a decision on how this transaction will be handled.

4. Have the listing agent be at the property to answer the appraisers questions about any upgrades.

5. Be prepared for a slightly longer closing time and delays- Client may want to lock the rate for 45 day days in stead of 30 to be safe. (Information paraphrased from )

If you have any questions or know anybody looking to purchse or refinance I'd be happy to help! Thanks for the opportunity to earn your business. I'm always looking to build relationships with quality agents.

Chad E. Bahnsen- Mortgage Professional

Mortgage Network, Inc.
14 E. Stratford Ave Ste 3C
Lansdowne, PA 19050
Cell: 610-457-7262
Office: 610 622-2212
Fax: 1-866-590-3806
E-mail: NMLS # 127719
0 votes Thank Flag Link Fri Jan 13, 2012
Actually, I just saw the rest of your post;
"bought at $50000 selling for $220000 rehab"
That's the tough part. You are usually capped at 20%, but it's possible with a bit of work.

From HUD:

"If the resale price of the property is greater than 20 percent above the seller’s acquisition cost, the roperty will be eligible for an FHA-insured mortgage only if the Mortgagee justifies the increase in value.
The Mortgagee must verify that the seller has completed sufficient legitimate renovation, repair, or ehabilitation work on the subject property to substantiate the increase in value by retaining supporting documentation in the loan file or by providing a second appraisal.

• If the Mortgagee uses a second
• An FHA roster appraiser must perform the appraisal in compliance with all FHA appraisal reporting requirements.
• The Mortgagee may not use an appraisal done for a conventional loan even if it was completed by an FHA roster appraiser.
• The Mortgagee may not charge the cost of the second appraisal to the homebuyer.

If the Mortgagee has ordered a second appraisal to document the increase in value, the Mortgagee must not see this appraisal for case processing and must not enter it into FHA Connection. "

Try the contact I gave you and see if he can help.
0 votes Thank Flag Link Fri Jan 13, 2012
I am not in PA, but the policy is the same nationwide. Just about anyone who offers FHA should be able to accomplish this for you. FHA's anti-flipping waiver has been extended through 2012. Press release here:…

In PA try :
Joe Cafiero
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Fri Jan 13, 2012
I appreciate your help but I am looking for a lender to answer. Have spoken to several with no luck . Thank you though!
0 votes Thank Flag Link Fri Jan 13, 2012
Try Eric May -Prosperity Mortgage 484-716-4299

Best of luck to you,

Rob Hughes: Long & Foster Real Estate Inc.
(Associate Broker) (AB065650)
(Hughes Associates) (Realtor since 1987)

Office: 610-225-7400 x7438

Cell# 484-410-9765 (Preferred)


0 votes Thank Flag Link Fri Jan 13, 2012
Yes please call me at 267-577-7240 and I will have the right person walk you through the process
0 votes Thank Flag Link Thu Jan 12, 2012
Call Robyn Brody at Aurora Financial
(215) 290-2461
0 votes Thank Flag Link Thu Jan 12, 2012
Edward Dubinsky
Branch Manager
Office: 267-296-9309
Cell: 215-808-5353
Fax: 215-701-9198
Web Site:

See me more about me:…
0 votes Thank Flag Link Thu Jan 12, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer