Financing in Stockton>Question Details

shine_aurora, Home Buyer in San Jose, CA

Which lenders don't have flip restrictions?

Asked by shine_aurora, San Jose, CA Tue Apr 10, 2012

Hi, I'm looking to purchase an investment property with 20% down and as a conventional loan. Now I'm seeing several lenders have restriction of not lending if seller has less than 6 months of ownership of the property. Any one know which lenders will approve flip properties?

Help the community by answering this question:


Imorgage will lend on this property, we do not have a flipping policy on conventional home loans and we do not requrie the buyer to have "rental history" experience.

We are a direct lender.

You may contact me directly with other questions or concerns

2 votes Thank Flag Link Tue Apr 10, 2012
I'm a general contractorfor 15 years  I have made more than 30  flip houses with incredible results 25 to 120% gain by the investment, but now I want to become independent and find a lender to give me 80% of the value of the home at 12% annual interest, and I put the remaining 20% ​​plus the price of the repair. Where a can find hard lender for flip house?
Flag Tue Jan 28, 2014
Yes, Imortgage will lend on this property. 1) On our conventional loans we do not have a flipping policy and here are not any investor overlays. 2) Imortgage, unlike other lenders, do not require you to have 6 months or any months of "rental ownership". We will lend in any city in California
2 votes Thank Flag Link Tue Apr 10, 2012
In addition to the comments made, there are more things to evaluate as you move forward. For example, you should make sure that you have a Realtor that will be meticulously mindful of your contingency release deadlines so that your deposit is not in jeopardy without your approval. This will become very important as it relates to your appraised value. Also, particularly when dealing with a flipped property, make sure you or your Realtor checks with the city to confirm that there are no open code violation citations on the property. Sometimes these code violations will not show up on a preliminary title report, but could exist nevertheless.
1 vote Thank Flag Link Wed Apr 11, 2012
Hi Shine_aurora,

I worked with imortgage for 3 years, they are a good company, but they do have "investor overlays" with their lending guidelines.

The bank I currently work with has been in business since 1980, underwrites strictly to Fannie, Freddie & Ginnie Mae's guidelines with no overlays, plus we service our loans which allows for more flexible underwriting. What this means to you & our clients, is that more loans are being approved, including flips, even your 10th financed, flipped property.

Please feel free to contact me directly if you have any further questions, I'd be glad to help.

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, USDA, Jumbo, Conventional, plus, we allow Escrow HoldBacks!
1 vote Thank Flag Link Tue Apr 10, 2012
I can do FHA loans on a flip, there are some restrictions: must be owner occ. Requires 2 appraisals one must be paid for by the seller, and we review the home inspection, the buyer can not pay for the home inspection until closing.
0 votes Thank Flag Link Wed Apr 11, 2012
Good answers so far. There are lenders that will finance this type of transaction. The issue is making sure the flip property appraises at the flipped price. If the property was purchased recently at X, how could it be worth Y 60 days later? Many flippers will not share what they paid and the cost of improvements made.
Good luck,
0 votes Thank Flag Link Tue Apr 10, 2012
Simply stated, as a Direct Lender we fund on homes that have transferred in less than 90 days on all loan programs i.e. FHA, VA, USDA and Conventional. Please feel free to contact me as we have no investor overlay restricting FLIPs.

Best of Luck!
Web Reference:
0 votes Thank Flag Link Tue Apr 10, 2012
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