Solution? Make sure that your lender doesn't have their own policy restricting underwriting and financing of "flips" and has access to an investor who will honor the FHA guidelines, as written, without a third layer of restrictions and conditions. Layers are good if you're Shrek, not so much if you're a buyer's agent trying to make your client's first time home buying dream come true when they find that cute little remodel with the fenced backyard for her kids.Press Release
Finally, I've found the actual FHA regulation, a clear and concise breakdown of the waiver of FHA's Anti-Flipping Rule. Surprisingly, the FHA ruling is quite simple reading, with easy, common sense conditions to meet. If any of you are dealing with individual lenders and their investors with flip situations right now, you know that these institutions all have their own "layer" of requirements that make it almost impossible to meet their guidelines.
Knowledgeable & Professional Representation ... Aggressive Negotiation
Kim Novak is a Realtor® and Broker Associate with RE/MAX Masters in Salt Lake City and Layton, Utah. Licensed in 1995, Kim has closed over 500 sales during her full time real estate career and achieved industry recognition as a Lifetime SalesMaster and member of the RE/MAX Hall of Fame. She holds a BSBA with an emphasis in Sales & Marketing and has achieved the following designations/certifications:
ABR: Accredited Buyer Representative, AHWD: At Home with Diversity, CDPE: Certified Distressed Property Expert, CHS: Certified HAFA Specialist, CRS: Certified Residential Specialist, CSP: Certified New Home Sales Professional, ePRO: Internet Professional, GRI: Graduate of the Realtor® Institute, SFR: Short Sale & Foreclosure Resource, SRES: Seniors Real Estate Specialist
Kim, I didn't know the FHA had a rule against flipping houses. I guess they don't watch all those real estate shows!
Hi Andrew,
Thanks for making me really laugh out loud!