If a friend of mine bought a house all cash and now want to sell it to me for the exact price he paid can I

Asked by Brian Demello, 95355 Wed Mar 25, 2009

Brian Demello
Home Buyer
95355
get financing on the home before 90 days of his purchase date or will the anti-flipping law prevent this?? Could I get any type of financing?? If so who and how??

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Brian Demello, Home Buyer, 95355
Thu Mar 26, 2009
The House appraised for 420,000 2 weeks ago and he bought it for 410,000 and is willing to sell it to me for 410,000. If there is no profit involved, Is this considered a flip??
0 votes
Hannah Flieg…, Agent, Larkspur, CA
Thu Mar 26, 2009
Hi Brian,

This flip would depend on the appraised value of your home after your friend bought it. Did he add value through rehab? See the comp was set when he bought it a few months ago. Do you have good credit to qualify for financing? What is the appraised value of the home? You might need to put some cash down in order to obtain financing of 3% for an FHA loan or more $ down for conventional financing. Therefore your friend might have to carry a small second on the property in order for you to purchase the house from him and get most of his cash out and then you can refinance down the road or pay him off monthly over time.
Good luck!
0 votes
Bill Eckler, Agent, Venice, FL
Thu Mar 26, 2009
Brian,

There are many factors to consider...one of which is, will the home appraise for the amount he purchased it for? In a market with downward tendencies this should be a concern.
0 votes
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