Zillow Advice: FHA and VA Loans - How long does an investor need to hold onto a property before flipping, under the FHA guidelines? http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ Zillow Advice | Zillow Real Estate The FHA Flip Waiver is still ... http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ The FHA Flip Waiver is still in effect, so technically there is no waiting period. BUT--if the new sales price is 20% more than the price that the investor purchased it for, expect the lender to order a second appraisal. The second appraisal cannot be paid for by the buyer so your seller would pick up the cost.<br/>&nbsp; That being said....most lenders have their own internal 90 day flip rule. To be safe, your investor shoud try to hold the property for 90 days before signing a contract with a buyer who is using FHA financing.<br/>&nbsp;&nbsp; Google...Waiver of Requirement &nbsp;24 CFR 203.37 a(b)(2). Wed, 18 Sep 2013 17:36:00 GMT http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ 2013-09-18T17:36:00Z Back to my question. &nbsp;The ... http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ Back to my question. &nbsp;The property I'm buying with CASH is a "Short sale". &nbsp;The other investor looking to buy from me is also cash buyer.&nbsp;<br/>Does waiting period apply on "Short Sales"? &nbsp;Looked over Altisource contract there is nothing about re-selling the property. &nbsp; Fri, 31 Oct 2014 18:00:00 GMT http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ 2014-10-31T18:00:00Z I recently did a loan for ... http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ I recently did a loan for an FHA flip, and everything went fine. Because it was under six months from the seller's date of ownership we did need to get a second appraisal, and the seller had to provide thorough receipts and invoices for all the work that was done because the seller bought a $400,000 shell and rehabbed it and sold for $650,000, so there was a large value increase to support with receipts/invoices. But both appraisals came out fine, the seller provided everything that was asked for, and there was no problem. Fri, 31 Oct 2014 17:46:00 GMT http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ 2014-10-31T17:46:00Z Mony,No........just be sure ... http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ <p>Mony,</p><p>No........just be sure buyer is talking about <strong>cash</strong> and a&nbsp;lender is not involved.</p> Fri, 31 Oct 2014 17:36:00 GMT http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ 2014-10-31T17:36:00Z I'm buying a house with cash ... http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ I'm buying a house with cash and turning around selling to another investor with cash. &nbsp;Does the wait period apply?<br/>&nbsp; Fri, 31 Oct 2014 17:01:00 GMT http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ 2014-10-31T17:01:00Z FHA is the only loan program ... http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ FHA is the only loan program that has any flip rule or policy, but that has been addressed with the FHA Flip Waiver Mortgagee Letter. Conventional, VA and USDA have no flip rule or policy. I work with a number of Investors and as long as the Preliminary Title Report shows with the new owner's name, there is no minimum time frame to sell. But as answered by Mr. Moore above, if the seller selects a FHA buyer, the buyer will be required to have a 2nd appraisal on the property and depending on the buyer's lender, maybe the seller will have to show receipts from any rehab, and even be required to have a Home Inspection done that is unless the owner has held title for 3 months.<br/><br/>Best of Luck!<br/><br/> Thu, 19 Sep 2013 15:14:00 GMT http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ 2013-09-19T15:14:00Z Its always a good idea for ... http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ Its always a good idea for the investor to provide the lender with an improvement and cost breakdown so they can supply it to the appraiser and the underwriter. Neither (the appraiser or underwriter)&nbsp;have any idea what improvements were made so it is always a good idea to provide the info.<br/>&nbsp; Some investors scream and yell about this, but the seasoned ones know it is smarter to provide it up front than to cause delays down the road with explainantions and receipts.<br/>&nbsp; It also helps the appraiser to account for the newer features of the home so they can adjust as needed (updated roof, windows, etc.). Wed, 18 Sep 2013 19:35:00 GMT http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ 2013-09-18T19:35:00Z Depending on the bank or ... http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ Depending on the bank or lender 30 days to 6 months. We only require 30 days. Let me know if I can be of further assistance. Wed, 18 Sep 2013 19:26:00 GMT http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ 2013-09-18T19:26:00Z the real estate purchase ... http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ the real estate purchase contract needs to be dated on the 91st day.&nbsp; The property can be marketed before the 90 days.&nbsp; Also, most lenders will require 2 appraisal reports and a home inspection report to justify the increase in value.&nbsp; Wed, 18 Sep 2013 19:06:00 GMT http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ 2013-09-18T19:06:00Z Great information...thank ... http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ Great information...thank you gor explaining. Does the invertor have to furnish receipt to lender to justify increased price? Wed, 18 Sep 2013 19:03:00 GMT http://www.zillow.com/advice-thread/How-long-does-an-investor-need-to-hold-onto-a-property-before-flipping-under-the-FHA-guidelines/511827/ 2013-09-18T19:03:00Z