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Is it true that I cannot obtain a loan for a home that the seller has owned for less than 90 days?

We would like to buy a home that the current owner has owned less than 90 days. When I contacted a local bank regarding a loan, the loan officer said that there is an "anti-flip" law which means they cannot give a loan to a house that has been recently sold---- and that we'd have to wait 6-12 months before being able to get a loan. Does anyone know if this is accurate or if there are particular lenders that do and don't do this? Thanks everyone!!!:) by xmrt21_124_913 from Orlando, Florida. Jun 28th 2012 Reply


Joel Lobb (kentuckyloan)
#3 ranked lender in Kentucky - 192 contributions

Not true. You should be fine. Just mattes what they are trying to sell it for and if the flip makes sense.

Jun 28th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

It depends. William summed it up perfectly. Your biggest mistake was "contacting your local bank". My advice is to contact a local Mortgage Banker/Broker, rather than one of the big banks or national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

Jul 1st 2012
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Stephen McWilliam (StephenMcWilliam)
#137 ranked lender in Florida - 45 contributions

Not true, there isn't any such law. There may be a lender specific requirement but there isn't any such law. Valuation may become an issue if the Seller is attempting to sell at a substantial profit. Please contact me directly to discuss your options Steve McWilliam 954-449-1767 SMcWilliam@FloridaStateMortgageGroup.com

Jun 28th 2012
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Scott McPherson (ScottMcPherson)
#555 ranked lender in California - 25 contributions

It is my experience that the "Anti Flip" is a rule or a policy that differs between lenders/banks. It's best to use a mortgage broker in this situation because he/she will be able to do the research for you and find a lender who doesn't have a problem with Flipped properties. Good Luck.

Jun 28th 2012
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Linda Burek (lburek)
#139 ranked lender in Florida - 25 contributions

If you go conventional financing with 20% or more down and no PMI (private mortgagae insurance) is required than you can obtain financing. If you would like any additional information please feel free to call me at 727-518-7818. Best Regards, Linda Burek

Jun 28th 2012
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

I believe I can help you. Please give me a call to discuss further. 201-962-3555 Michelle

Jun 28th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Ok.. What you're referring to is not a law it's a guideline. Under FHA, they would not allow someone to finance a home if the owner had owned it less than 90 days and they are marking up the property more than 20% of the original purchase price. This goes by purchase price not acquisition costs. (If he is selling it for less than 20%, then there is no issue at all). Currently FHA has a "Flip rule waiver" in effect until December. If someone is selling a home they have owned for less than 90 days and they are marking it up more than 20%, then FHA will finance the home. They will require 2 appraisals, and the borrower can only pay for one of them, but FHA will finance it. If the home is marked up more than 100%, (double) then 2 appraisals will be required inside of 6 months. Fannie Mae/Freddie Mac allow flips past 90 days or if the sale price is less than 20% markup.. There is no "waiver" on the conventional side. But your real mistake is trying to deal with a local bank.. There are many lenders out there allowing such a purchase, but most banks don't... The best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. 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. 480-287-5714 WilliamAcres.com

Jun 28th 2012
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James Barath (JamesBarath)
#1 ranked lender in Indiana - 352 contributions

Although there are many states that have anti-flipping statutes, many are generic in nature. When it comes to the specific reference to title seasoning, that is generally a loan program and/or investor guideline. Work with a local mortgage banker/broker to help you find an amiable solution to your purchase dilemma. Good luck.

Jun 28th 2012
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

FHA UPDATE-Anti Flipping Extended from A florida blog.... i do loans in florida.. December 23, 2011 by admin ? Leave a Comment It is now official, FHA has extended the Waiver of Anti-Flipping Regulations through December 31, 2012. This extension will continue to allow borrowers to use FHA-insured financing for the purchase of properties that have been owned by the seller for less than 90-days, meeting the same conditions as previously permitted by FHA. ?In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the Waiver will only apply if the lender meets specific conditions and documents the justification for the increase in value. This typically means a second appraisal and home inspection. This is great because it still encouranges investors to buy homes and fix them up creating more inventory that is fixed up and can be closed on without doing a short sale.

Jun 28th 2012
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