Last Friday, we provided FHA mortgage financing allowing our Oviedo, Florida home buyer the ability to close on his new home purchase prior to the closing on his existing primary home.   With qualifying debt ratios slightly under 50% and excellent credit, we knew underwriting hurdles would be lowered on this one.  What we didn’t know certainly provided excitement at the last minute.  Only 4 days  prior to closing, we were informed that this was a FLIP!
By the way, a Flip is where the buyer is purchasing a home within 90 days of the last acquisition date.

At Thomas Louis Mortgage, we do provide FHA FLIP financing for a home buyer purchasing their next primary home under 90 days from the last purchase (FLIP).  This does come with a few specific guidelines that need to be reviewed as early as possible into the transaction:

  • All transactions must be at arms-length with no identity of interest between buyer, seller or other party in transaction.
  • A 2nd appraisal may be requested especially if the sales price exceeds 20% of the sellers acquisition costs.
  • A home inspection may be required especially if the sales price exceeds 20% of the sellers acquisition costs.
  • The seller may be requested to provide documentation for improvements to the home as well.

We began processing this specific buyers file on December 22nd and eventually closed on January 20th; just under 30 days.  This included ordering a 2nd appraisal and providing a clear Home Inspection report, all completed 10 days prior to closing.  The listing agent asked how he could better prepare all parties in the near future with respect to flips…
I told him to make sure everyone is informed about the Flip upfront, and make sure you work with Thomas Louis Mortgage with your next FL home buyer.  For more information on FHA loans or FLIP guidelines, please feel free to contact me at 407.733.6425.

Stephen Thaggard, NMLS 356309,  Sr Loan Officer, licensed in Florida,

Embrace Home Loans, NMLS 2184,  485 N Keller Road, Suite 550, Maitland, FL 32751