FHA and “flipping”

Recent experience – A buyer falls in love with a home that was purchased a couple of months ago and then was rehabilitated. New homeowner put it back on the market for considerably more than the original purchase price-obviously to compensate for the $$ spent on the updates/refurbishing.

Beware! FHA loans require that the sales contract be written on the 91st day after the home was purchased by the current homeowner, not one day sooner. For instance: current homeowner purchased on July 1, 2009, puts it back on the market on August 20 with all of its new features. Buyer comes along – no offer can be written/accepted until Oct. 2, 2009.

Posted on August 24, 2009 at 12:17 pm
Brenda Schwindt | Category: Uncategorized

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