HOUSE FLIPPING GUIDELINES FHA Loans VA Loans • A property is eligible if resold between 91 and 180 days • No Rules for Property Flipping (Additional underwriting after purchase and guidelines may apply at lender’s discretion) § new contract must be dated at least 91 days from current owner/seller aquistion date USDA Loans § a 2nd appraisal is obtained if the resale price is 100% or • If a property’s value increases substantially between the greater than price paid by seller previous sale and new purchase, a lender is responsible § if a 2nd appraisal is obtained and more than 5% lower than for ensuring the property’s value is strong supported the value of the first appraisal (lower value must be used) • A property’s appraisal value must be supported with § the borrower does not pay for 2nd appraisal validated comps from the lender • A property is not eligible if resold 90 days or less after to protect the borrower from current owner/seller aquistion date predatory lending • Exceptions § Investor is an employer or relocation company Fannie Mae purchasing a property to relocate an employee • No Rules for Property Flipping § Resale of HUD Real Estate Owned properties (Additional underwriting guidelines may apply at § Property is acquired through inheritance lender’s discretion) § Sales by other government agencies or builders selling a new home § Freddie Mac Sales of non-profit agencies approved to purchase • No Rules for Property Flipping HUD properties PROOF( Additional underwriting § Sales of properties by federally chartered instituitons or GSEs guidelines may apply at lender’s discretion) § Sales of properties in federally declared disaster areas Lender must obtain a 12-month chain of title to document time restrictions above. Guidelines are subject to change without notice and are neither a loan commitment nor a guarantee. TitleName Goes Here Goes Here TitleitleTName Goes Goes Here NMLS ID 000000 Real Estate Company Goes Here Address goes here Office: 000-000-0000 City, State 00000 Cell: 000-000-0000 Phone: 000-000-0000 Email: [email protected] Email: [email protected] Web: www.twmortgage.com/xxxxxxx Web: xxxxxxxxxxx.com Real Estate Logo Goes Here NMLS ID 71158 www.nmlsconsumeraccess.org ADVERTISEMENT 00/00/00.