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Can I begin a FHA loan at 45 days of owning the home, and have the close of escrow occur after the 90 days to avoid the "flip rule"

Do I have any way around this? Thank you! by frederika_b824 from Mumford, Texas. Oct 21st 2015 Reply


Larry Gray (lgray_312_247)
#592 ranked lender in California - 1,139 contributions

Are you asking...after having just purchased the home...can you refinance into anFHA loan to close escrow 91 days from the close of the original purchase loan?Or are you asking that after someone else close escrow...can you or someone close an FHA purchase loan 91 days after previous close of escrow? If my first statement is relative to your situation then I say no. If you are asking me about having purchased a home and then selling it wherein someone else purchases the home 45 days after close of escrow, and then plan to close 46 days later...for us and many lenders, my answer is also no. We require you begin an escrow after 90 days from previous purchase per FHA on any flip.

Oct 21st 2015
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Larry Gray (lgray_312_247)
#592 ranked lender in California - 1,139 contributions

What you might do if you are referring to a typical flip:Have the buyer go ahead and submit a TBD application to get a full Underwriting approval right now. Then, once the 90 days has passed they can get a contract and order an appraisal - that way you should be able to close in about 2 to 3 weeks from execution of the contract. You will need a lender with a strong reputation ingetting fast loans done, however. Also, the new TRID will add 6 days minimum I am sorry to say! A 15 day close would now be 21 day.

Oct 21st 2015
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Mike Cox (MortgagePRO)
#29 ranked lender in Wisconsin - 5 contributions

More information is needed. Feel free to call me at 920-378-0002 to discuss. If you are a seller there are other options.

Oct 21st 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

No.. Per FHA guidelines, the contract date must be greater than 90 days from the previous sale deed recording date.. the buyer can always apply before hand, and there are lenders who will underwrite a borrower without a property selected (TBD, To be determined), but you cannot have a contract prior to 90 days.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Oct 22nd 2015
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Joe Metzler (JoeMetzler)
#19 ranked lender in Minnesota - 3,981 contributions

NO you may not. FHA guidelines essentially state the purchase agreement must be dated after day 90 of the current person owning the home. You can talk to a Loan Officer, you can get basic pre-approval, but there is nothing to officially start until you have a purchase agreement contract, which again, can not be dated prior to the current owner owning the house for 90-days. For FHA loans in MN, WI, and SD, visit me at www.Minneapolis-Mortgage.net

Oct 22nd 2015
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Derick Condron (rightstartoregon)
#32 ranked lender in Oregon - 598 contributions

Short answer no. All the FHA documents can not be any sooner than 90 days of the prior purcahse

Oct 22nd 2015
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,112 contributions

The answer is no, need to wait until the 90 days is up.

Oct 25th 2015
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