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I'm putting an offer on a house that sold June 21 so the seller has owned it less than 3 months. My mortgage guy told me lenders require 90 days between when the owner purchased it and when I do a contract to buy. He said it may be possible to do one now and then tear it up and re-do it on September 21. I'm waiting to hear back. Is there any way around this?
He also said I will probably need 2 appraisals and detailed records from the seller of the improvements he has made, especially since I'm offering him 90K more than he paid.
Each lender is different so that might be his criteria. I closed one in May that just had 90 days and I warned the sellers that they might need to give up their receipts to show work done, and the lender didn't require a thing, and this was a VA loan which is usually more strict.
90 days was an old rule, and some lenders have relaxed from it.
I'm putting an offer on a house that sold June 21 so the seller has owned it less than 3 months. My mortgage guy told me lenders require 90 days between when the owner purchased it and when I do a contract to buy. He said it may be possible to do one now and then tear it up and re-do it on September 21. I'm waiting to hear back. Is there any way around this?
He also said I will probably need 2 appraisals and detailed records from the seller of the improvements he has made, especially since I'm offering him 90K more than he paid.
Why do you want to go around it? The lender is protecting not only themselves but YOU too. If somebody turn back and sold 90K more than they paid 2 months ago, I would definitely like to know all the circumstances of the sale as well as any improvements they made myself even if the lender doesn't want to know about it. Take the emotion out of it. You don't want to be a sucker.
This deal has been going on for months so I'm pretty aware of what improvements have been made. I just didn't want the "90 day rule" to prevent me from at least making an offer and putting it under contract. The closing date is after the 90 days. I submitted my offer today so, hopefully, will find out soon. Thanks.
The 90 day rule varies from lender to lender. You will have to get two appraisals. Also everything in the home inspection must be fixed, repaired, and documented
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