Are any lenders honoring the 90 day flip rule waiver?

[Randy Bearden]

We purchased our 3rd rehab property in the middle of October. Finished the rehab and put on the market in the middle of December. It went under contract Christmas Eve. The buyer's lender is backing out due to the property going under contract during the 90 day seasoning period. MY BAD ... My RE agent did not realize we were still in the seasoning period. MY BAD AGAIN ... I did not tell RE agent because I thought the 90 day rule had been waived by HUD for FHA insured loans through 2014. The two things I have found during research are; (1) the 90 day rule has been waived and (2) lenders will not honor the waiver.

Now for my questions. Are there any lenders out there that will do financing on a property in the 90 day seasoning period? What are other investers doing in this situation?

[J Scott]

I assume you're talking about FHA. We closed a dozen of these in less than 90 days last year, so it's certainly possible.

The key is to find a bank/underwriter who will do the loans in under 90 days, and "encourage" your buyers to use that lender. Most regional banks and a few of the big banks will now do loans in less than 90 days. I would suggest starting with a couple regional banks, but if you need to use a big bank, try BB&T or Wells Fargo (WF rules will differ depending on the specific underwriter, so check with the LO in a couple specific branches).