I have heard that if I mortgage a house in Texas I have to wait 90 days before I can sell it. I am looking at

Asked by Ben Haecker, Euless, TX Sun Jun 29, 2008

a quick flip opportunity but don't want to tie up the cash for it. Is it true that I have to hold it for at least 90 days before selling?

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7
T.E. & Naima…, Agent, Dallas, TX
Sun Jun 29, 2008
BEST ANSWER
Ben, It's not a state law or anything like that. It's something that is decided by the mortgage company that you go through. Every mortgage company has their own rules and if you already know who you are borrowing from then they have to answer it.

I have listed homes that some investors purchased that same week.

Naima
214-289-8555
naima@sumner-realty.com
Web Reference:  http://www.sumnerrealty.com
3 votes
Carol Pease,…, Agent, Austin, TX
Mon Jun 30, 2008
FHA has temporarily waived that requirement. It doesn't go back into effect until sometime in 2009. The buyer's lender will look hard at your appraisal but cannot require that you have held it 90 days. This rule was passed originally as a fraud prevention where straw buyers run up values and then sell to unsuspecting buyers. That's called mortgage fraud.
Web Reference:  http://www.LeanderHomes.com
2 votes
Keith Sorem, Agent, Glendale, CA
Sun Jun 29, 2008
Ben
I don't know exactly what your situation may be, however I suggest that you discuss your plan with a Realtor and a lender, outlining your objectives. I am relatively certain that if you laid out up front your plans you could find a short term loan that would meet your needs. If you need a referral let me know.
1 vote
Bruce Lynn, Agent, Coppell, TX
Wed Jul 2, 2008
Most traditional mortgage companies will not want to make loans to you based on a 90 day turnaround. They don't make any money that way. What might be better is hard money loan if you plan to flip.
Web Reference:  http://www.teamlynn.com
0 votes
Ben Haecker, Both Buyer And Seller, Euless, TX
Mon Jun 30, 2008
Keith, lets say for instance that the property appraises for 90k in its current condition and I have the chance to buy it for 60k with say 15k down. Advising a lender that I will invest an additional 5k to update it and list it for 99k within 4 weeks of closing. (The comps in that area are from 99k to around 130k.) In your opinion, would this be a tough loan to get in our area right now?
0 votes
Mark Chovan, , Frisco, TX
Mon Jun 30, 2008
I think you might look at this from a different angle! When you sell the home the buyers lender may have requirements that will restrict them from lending money. Country Wide would not loan money to a buyer on an investment home I was selling. They told the buyer I needed to own it 1-year prior, and would not make the loan.
0 votes
Ben Haecker, Both Buyer And Seller, Euless, TX
Sun Jun 29, 2008
Thank you Naima. I flipped a house last year in that area and learned volumes! I have done literally hundreds of hours of research in that zip code and know what a deal I have found with this new one. I had too much hard cash tied up in the one over there last year that sat on the market for 6 months. Long story short I got 2 equal offers above my asking price in the last week of the listing. This will be a paint and carpet kind of thing and I now know to price a little under value to move it. Thank you for your quick response. I will certainly call upon you if I need any assistance in this one.
0 votes
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