It is now possible to flip a property for more than 20% and get an FHA loan on the home.
Academy Mortgage is now offering financing on properties with a 90-day flip that have an increase in the sales price of 20% or more for FHA loans.
But these loans must be underwritten by certain underwriters at Academy – one of them sits right down the hall from me.
Below is a list of requirements that must be met in order to finance these properties. These guidelines are in addition to the existing FHA less than 90 day flip guidelines already in effect. This product will be available beginning 3/12/10.
FHA Flip >20% value increase from last sales price.
- Maximum DTI is 50%, regardless of AUS Findings.
- Minimum Fico for all Borrowers is 660.
- Owner Occupied only.
- Two (2) Appraisals must be ordered in compliance with HVCC guidelines. One of the appraisals must be ordered from RELS Evaluation.
- An AVM is required and can be ordered through any industry accepted AVM product including Interthinx/Fraudguard.
- Any concerns or inconsistencies regarding support of property value must be fully satisfied. If the underwriter is unable to satisfy their concerns or inconsistencies pertaining to value, the loan will be declined.
- Property Inspections must be ordered and any issues resulting in health, safety, marketability or structural deficiencies must be cured prior to closing.
Are you running into problems with getting your flipped property approved?
Contact one of our experts.
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Do you do California loans? Wholesale?
Hi Lisa,
We do California loans — but not wholesale. You can also see us at TenDayClose.com for more information.
Justin
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