For many FHA first time home buyers the chance to find a turn-key property is slim. With a market full of deserted properties and as-is bank owned buyers tight on money have few options. Insert the "flip".
A flipped property is where an investor or group of investors purchase a property, usually at the courthouse trustee sale, rehab it, and put it back on the market for profit. Prior to 2010, there was a waiting period that FHA buyers had to abide by in order to purchase one of these flips.
In February of 2010, the Obama Administration waived the 90 day rule through the end of 2011. This allowed FHA to lend on 42,000 mortgages nationwide that they most likely wouldn't have been able to because of poor property condition.
Well, that flip waiver has been extended through the end of 2012 with much praise and a sigh of relief from potential home buyers and Reno/Sparks flip giants NRES-NV1 LLC and Dickson Group I LLC.
The flip rule does come with a set of criteria and processes that must be followed in order to bypass the 90 day waiting perios. Most specifically for flips that net the seller over 20%. As a buyer, you may run into second appraisals or repairs/rehabs needing to be documented.
For more information on buying a home in Reno or Sparks, Nevada feel free to contact me at Ricky@Resnv.com
Ricky Beach
Managing Broker/Realtor®
6900 S. McCarran Blvd., Suite 3040
Reno, NV 89509
Office:(775) 313-9600|Cell:(775) 750-1437|Fax:(775) 562-4779
Its been waived Ricky but most lenders won't lend until the 90 days are up. If they will some require receipts to show the upgrades and two appraisals. I have one I just received a contract on and i want to make sure the buyers lender will close the deal. I also have additional issues because our county takes 2 to 3 months to record because of a flood the court house had that messed up records and their recording equipment.
Great information! Thank you for sharing!
Thanks for the comment Steve. We have a few mortgage brokers in town that will lend within 90 days. All they want is the second appraisal. Of course the biggies BofA and WF won't. Nothing you can do about the flood. I bet that's frustrating.
Some of the lenders will loan but want an Inspection report. I've even had the lender order the Home Inspection directly. Either way the more houses that sell the more work.