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Old 10-24-2009, 11:38 PM
 
146 posts, read 821,993 times
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Does anyone know of any lenders that will do a convential 30 year fixed that do not have a 90 day flip rule?
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Old 10-25-2009, 12:48 AM
 
Location: Colorado Springs, CO
1,570 posts, read 5,663,341 times
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No.
I work with many investors - some flip, some hold for rentals. You need money to be in the game. Frankly most investors work with cash or have a line of credit.

Just a reminder - never lie to obtain credit or a mortgage. To do so is fraud.

Best wishes.
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Old 10-25-2009, 01:16 AM
 
146 posts, read 821,993 times
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Sorry, I think I was uncler. I am a potential buyer looking to purchase my first home (to live in, not as an invstment). This home would fall into the 90 day flip category. I would never consider lying on a mortgage application.
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Old 10-25-2009, 08:33 AM
 
Location: Orlando
8,259 posts, read 12,031,404 times
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If the home has has improvements you can get aroound the 90 day rule.
The flipping rule is designed to keep someone from buying at a steal and doing nothing but resaling it as soon as possible at a profit. years ago people would assign at the closing table and pocket a fortune.
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Old 10-25-2009, 08:52 AM
 
Location: Just south of Denver since 1989
11,563 posts, read 31,755,343 times
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No big lenders, try a local portfolio lender.
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Old 10-25-2009, 07:17 PM
 
Location: Tempe, Arizona
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You should check with a local mortgage broker. I recently had a client get a conventional loan for a flip property under the 90 day rule. The flipper did make some improvements.
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Old 10-26-2009, 10:37 AM
 
Location: Boise, ID
8,047 posts, read 26,473,864 times
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Yes, I've been told the 90 day rule is to stop illegal wraps. Where the "seller" has a contract to buy the house, but isn't the owner yet, and does a simultaneous closing to buy and then to sell. Huge problem right now with the foreclosures, people are illegally bailing sellers out before foreclosure, then selling the property and trying to close simultaneously at both ends.

However, I hadn't heard that conventional loans programs had this rule. Its only come up in my area for FHA and VA loans. I know a person who buys, fixes up and sells, and he always lists "Conventional or Cash only" because the closings are often less than 90 days apart. He has not been able to get around the 90 day rule with FHA or VA even though he does substantial improvements on the properties.

Maybe its a local thing. Conventional loan buyers haven't been an issue here. But FHA and VA have been impossible.
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Old 10-26-2009, 10:44 AM
 
Location: Tempe, Arizona
4,511 posts, read 12,772,426 times
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Quote:
Originally Posted by Lacerta View Post
... However, I hadn't heard that conventional loans programs had this rule. Its only come up in my area for FHA and VA loans. I know a person who buys, fixes up and sells, and he always lists "Conventional or Cash only" because the closings are often less than 90 days apart. He has not been able to get around the 90 day rule with FHA or VA even though he does substantial improvements on the properties.

Maybe its a local thing. Conventional loan buyers haven't been an issue here. But FHA and VA have been impossible.
Yep, same here. My buyer had no problem getting a conventional loan. Other buyers that needed FHA/VA were at a disadvantage.
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Old 10-26-2009, 12:04 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Don't close until 90 days have passed.
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Old 10-26-2009, 12:22 PM
 
Location: Cary, NC
38,821 posts, read 67,207,625 times
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Quote:
Originally Posted by DMenscha View Post
Don't close until 90 days have passed.
I thought the 90 days was from close by flipper to contract by buyer, i.e., longer than close to close.
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