Selling a flip to someone going FHA

[Dan Costantino]

I have my second flip just about done. The first person I showed it to made me a full price offer. That's AWESOME!

But...they want to go FHA. I haven't gone through that before (1st flip sold to cash buyer).

Do you go through Purchase & Sales Agreement before getting a Desktop Underwriter approval? What would you tell them?

I don't want to tie up my property for months to find out they can't close.

Any advice or resources would be greatly appreciated.

Thanks!

[Greg H.]

Just as important as ascertaining the buyer's creditworthiness is talk to the loan officer about how their investors will handle a "flip". While FHA is not requiring the 90 Day rule currently, you need to find out how the mortgage investor handles them. Some still require 90 day seasoning, some won't allow the property to be "under contract" prior to 90 days, some will require 2 appraisals and some will want to see a statement of ungrades to the property(ie Your Numbers) and some do not care. Just find out the requirements up front and do not hesitate in being forthcoming with the loan officer