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Updated over 8 years ago, 05/25/2016
Need Assistance with FHA vs USDA Loan - Selling 2nd Flip
Calling all loan officers:
I am not sure if anybody can assist me, but I am going to take a shot. We completed our 2nd flip in March and received a full price offer within 5 days. Originally, the buyer was doing a VA loan, but the day after the loan was supposed to close, we were told she did not fit VA guidelines (The reason was not given but we were told it had nothing to do with her credit.) Her loan officer then changed it to an FHA loan and we signed a 30 day extension. I immediately asked if 2 appraisals would be required because the contract was signed in less then 180 days and we are selling it for more then 100% profit. We were told only 1 was going to be required. We were supposed to close tomorrow and now we are being told a 2nd appraisal is required. The loan officer now wants us to sign a new contract on Tuesday because the 180 days is up. In this case, she said a new FHA case number will be assigned. My questions are: 1) Does this make sense that a new case number will be assigned? My understanding is the case number follows the property. 2) Couldn't the lender still require a 2nd appraisal since they can obviously see what the loan officer is trying to do? (It is taking 3 - 4 weeks to get appraisals in Fayetteville NC right now. 3) Can the same appraisal be used with a new FHA case number? 4) If they change to a USDA loan, can the appraisal be used and if so, how long is USDA taking right now to review their loans? This has been a nightmare and we really do not want to relist the property since we are so far into the game, but may need to wash our hands of the deal and take our chances with a new buyer \ contract. Obviously, we want and need to close asap. Any suggestions?????? Thank you in advance for your assistance.