Buying and Selling Flipped Properties
Our market is full of properties being flipped. Some people and companies are buying houses, fixing them up, and selling them for a profit.
Wheater you are thinking of buying a home that has been flipped or buying a home and flipping it yourself, there are certain requirements. The first requirement you must be aware of is the buyer's loans. Each loan has different requirements.
FHA Loans: If the property was previously sold in the last 90 days and there is more than a 20% increase in price from what the flipper paid compared to what your buyer is paying there are 2 requirements. A 2nd appraisal must be done and the buyer CAN NOT pay for it. Also required is a copy of the buyer's home inspection report that includes any health or safety issues.
VA Loans: VA does not have any restrictions of flips. Only one appraisal is required. As long as the property appraises for the purchase price and underwriting approves the appraisal.
Conventional Loans: Typically only 1 appraisal is required if it is a strong appraisal.
In all cases the lender will want to see what the flipper paid for the property. A copy of the trustee's sale receipt is sufficient. Flipped properties do not necessarily require a longer escrow than a Traditional, REO, or Short Sale.
You should always discuss all your options with a Real Estate agent that knows what is required before making any decisions. Please do not hesitate to contact me if you have any questions (559) 287-8973 or CynthiaSellsFresno@gmail.com