Flip FHA before close? - Posted by Fred De La Riva

Real Estate Investing Real Estate Financing
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Posted by Fred on January 24, 1999 at 12:15:49:

Irwin,

Those are very good questions that I don’t have an answer to. I will look into it ASAP. This is my first home purchase.

Thank you.

Fred

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Flip FHA before close? - Posted by Fred De La Riva

Posted by Fred De La Riva on January 24, 1999 at 04:02:31:

I am in escrow for a property that is going to be funded with an FHA loan. The property was an REO and I offered under market value and it was accepted. Well, now I find that my wife is pregnant & my mother in law ( ughh !!), is moving in with us. To make a long story short, I need a bigger place. I been in escrow for 17 days and the loan officer says, the loan should be funded in what should be close to three weeks. I’ve talked to a few people who would be interested in buying my future home. Can I flip this property or wait after close and go from there?

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Re: Flip FHA before close? - Posted by Rene Perrin

Posted by Rene Perrin on January 24, 1999 at 10:28:31:

FHA is very “family oriented.” Even if you were to take possession, you should be eligible for a new FHA loan (assuming you qualify.) You would just have to document an increase in the family size and move to a home with a larger # of bedrooms.

I am assuming that you are buying the house with an FHA owner-occupied loan as opposed to a loan for an investor purchasing one of their Repo properties. If you are buying as an investor, it won’t matter whether you flip the home or not.

If you bought as an owner-occupant, you are stating that you will be moving into the house. If that is the case, move in and start looking for your bigger house.

Rene

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Re: Flip FHA before close? - Posted by Irwin

Posted by Irwin on January 24, 1999 at 06:50:12:

Is this a purchase from HUD using an FHA loan?
If it is a bank REO, what does your purchase agreement say about assigning the contract?
How much earnest money have you put up?
What does the agreement say about seller’s remedies if you don’t close without good cause, i.e your loan falls through?
These are facts that would be helpful to know.