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How long to I need to stay in a home prior to selling to avoid triggering a "flip" alert with the bank?

by guy262 from North Hills, California. Jul 6th 2016 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

Most conforming lending programs state you have to live in the home for 1 year.. However, there are scenarios when someone sells sooner, and it typically wont be a problem. Example:.. you buy a home and close on it.. 2 months later, your employer is transferring you to a different state.. This can easily be explained and should not be a problem. I've seen scenarios where someone bought a 2 story home and then broke their knee, and was unable to walk up stairs.. this is another scenario where it was acceptable.. Understand that if you do sell inside of a year, and you're buying in the same area/city/neighborhood again, then the NEW lender will scrutinize your file and ask you to explain why you sold for a profit and are now buying in the same neighborhood.. If they don't believe your story, they could make you purchase the property as an "Investor" which would make you subject to investor rates along with lower loan to values.. but there would be no issue with you selling the property if that happens.. you can do it any time.. 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 NMLS# 226347

Jul 6th 2016
Scott Fix (ScottFix)
#1347 ranked lender in California - 184 contributions

William hit the nail on the head.

Jul 6th 2016
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