Did you ever get this issue resolved?
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960
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 email@example.com 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:
â€Ž1. 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 http://www.trustyourlender.com )
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
Office: 610 622-2212
E-mail: firstname.lastname@example.org NMLS # 127719
"bought at $50000 selling for $220000 ...total rehab"
That's the tough part. You are usually capped at 20%, but it's possible with a bit of work.
"If the resale price of the property is greater than 20 percent above the sellerâ€™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.
â€¢ If the Mortgagee uses a second
â€¢ An FHA roster appraiser must perform the appraisal in compliance with all FHA appraisal reporting requirements.
â€¢ The Mortgagee may not use an appraisal done for a conventional loan even if it was completed by an FHA roster appraiser.
â€¢ 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.
In PA try :
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)
Web Site: edubinsky.ahmcloans.com
See me more about me: http://www.linkedin.com/pub/ed-dubinsky/1a/b89/841