Take what the attorney said with a pinch of salt. - Posted by Paul Macdonald
Posted by Paul Macdonald on December 18, 1999 at 08:31:49:
Your lawyer is partially correct. Some lenders will not do flips BUT:
Unless NY has unusual rules about flips OR the property is in a neighborhood that has had chronic abuse it is very do-able. There are still many lenders who will do a flip.
All you have to do is make a stronger case than normal about the value of the home. The appraiser will have to pull a lot of extra comps; there will be a review process (usually with an arms length professional company) or a second appraisal.
Let me stress something - THE LENDER WANTS/WANTS/WANTS TO MAKE LOANS! BUT EVEN MORE THAN WANTING TO MAKE LOANS THEY WANT THEIR LOANS TO BE SAFE!!!
If you show that the loan is safe you’ll get the loan. You might pay a little extra, or a higher rate or both but you’ll get the loan.
Find a good broker/banker.