Smart Financial Mortgage Update



Interest rates continue to be great this week.  With more investors buying and quickly flipping homes these days it is important to check how long a seller has held title.  When a property is being "flipped" and the seller has not held title for a minimum of 90 days, buyers will not be able to get FHA financing within the first 90 days.  The only waiver to this rule is if the seller is the bank that foreclosed on the property (investors and LLC’s that buy at trustee sales and then put the home on the market are not exempt from the 90 day rule).  It is important to note that NO documents can be dated prior to the 91st day. This includes purchase contracts, earnest deposits, title reports, appraisals, etc.  Conventional and VA do not have the 90 day rule BUT, many VA and Conventional lenders have internal rules stating that they will not lend within the first 90 days either.  Smart Financial is still able to lend on Conventional and VA without having to wait for 90 days. 



Take Care,