90 Day seasoning rules for flipping the property
With increasing number of homes in our area specially Prince William county and certain part of Herndon & Sterling you get find a fee simple property for under $150K. Lot of investors are coming from around the country to buy these bargin in our area. Why not we still have lowest unemployment rate and capital as our neighbor. I received a phone call from a first time investor from another state who wanted me to help them purchase a home they want to flip. They wanted to buy a HUD home and fixed it up. After having a brief conversation I informed them the restriction FHA and VA loans have.
For all of those who are not aware about this restriction, if you do decide to flip a property you cannot sell the home to a purchaser who are financing thru FHA or VA programs. Which according to the recent stats mean more than 1/3rd pool of buyers cannot be attracted to your property. I have heard some of the convention lender are also going to start that restriction. Before you head out with your crew and fix the property think about the reserve you may want to have before you can list the property for sale in the area.
But for my long term investor renting and holding may make more sense.
Comment Notification
Subscribe to this post's comments using