Frequently Asked Questions about Flips | ||
Frequently asked questions about Flips 1. What is a flip? Call Tami Winbury Keller Williams Realty for information on houses for sale 805-798-3412 http://www.venturacountyhomesforsale.net a. Any transfer of title within the past 12 months. 1) Sales <90 days. The Transaction must be exempt or meet the waiver requirements to be allowed. 2) Any sale within 91-180 days that has appreciated 100% or more requires a 2nd appraisal. 3) Any sale with 181-365 days that has appreciated 5% or more requires the u/w to evaluate the increases and determine the possibility that HUD may choose to ask for a 2nd appraisal at post audit review . (We do not automatically condition for a 2nd appraisal) Exception would be when the person transfers title to their sole LLC or Corp. 2. What must I do if my property is a true flip? The transaction must be exempt from the 90 day flip rule OR it must be eligible for the Waiver to the 90 day restriction. If not, the contract cannot be executed until after 90 days from the seller’s acquisition. Note: Waivers are not allowed on Bonds, DAP’s or 203k loans. 3. What would be considered an Exception to the <90 day rule a. If the Seller is a State or Federally Charter Institution seller an REO property. b. If the property was transferred to the employer or relocation company in connection with a relocation of an employee (aka the owner of the property) The u/w must provide in his/her file the documentation that show the original owner was being relocated by the employer. c. If the seller acquired the property by inheritance. d. Please refer to the FHA u/w guidelines section 37 for additional exceptions for Federal, State and Local government agencies. 4. What do I need to look for in regards to obtaining the <90 day Waiver a. Is this an Arms Length with no Identity of Interest Transaction? b. Does the seller hold recorded title? c. If the seller is an LLC, Corporation or Trust; are let in good standing with the state and federal regulations? d. Is there anything in the properties profile that shows this property had previous flipping within the past 12 months prior to the Sales contract? e. What was the sellers original purchase price? f. Was the property marketed openly. The appraisal will need to comment on this. The appraisal needs to have the any dates and sales prices that were listed or changed from the time is was put out for sale to our contract. This may be difficult to document if it was a FSBO. g. If the sales price is <20% a second appraisal and property inspection is not required. h. If the new sales price is at 20% or more than the sellers original purchase price, a 2nd appraisal and a property inspection is required. The 2nd appraisal may not be charged to the borrower. 5. When is a second appraisal required? a. If the sale is less than 90 days and requires the flip “waiver” and the property value has increased 20% or more as per the waiver requirement OR b. All sales, regardless of the seller, between 91-180 days and the increase is 100% or more. c. The cost may not be charge to the borrower. Note: This does not apply to sales less than 90 days and have documentation that it’s exempt from the 90 day restriction as per ML 06-1
Tami Winbury Keller Williams Realty DRE#01878369 http://www.LiveOjai.com |
Tami Winbury
Family Friendly Service
Friday, July 29, 2011
Frequently Asked Questions about Flips
Friday, July 22, 2011
Wednesday, July 20, 2011
How to Shop for a Mortgage
How to Shop for a Mortgage
In theory, finding the right mortgage should be a fairly simple process, especially since there are fewer product options to choose from these days than there have been in the past. However, obtaining the right mortgage is a complex financial decision no matter how many products there are to choose from. At a minimum, home buyers should consider the following questions before putting any mortgage into place:
|
Saturday, July 9, 2011
Shooping for a Home: It Should Be Fun!
Shopping for a Home: It Should Be Fun! |
New homes, old homes, big homes, small homes – they're all waiting for you to come take a look.It’s tempting to think of shopping for a home as a huge, time-consuming and potentially terrifying process – mostly because it is. Will you find the perfect house? Will you be able to afford it? Will you lose out on your dream house at the last minute to a higher bidder? But it’s also the ultimate shopping trip, with you browsing through all kinds of houses in all kinds of neighborhoods – one of which you will eventually call home. How cool is that? Consider Tami Winbury at Keller Williams Realty to be your adventure guide – or personal shopper, depending on how you see the home-shopping process. “I want to eleveate my clients stress, particularly first-time buyers. I do this through conversation and explanation while we view great homes and I discover their needs, ” says Tami Winbury . “I let them know I’m excited to be part of this with them.” Some buyers really enjoy getting out and exploring different neighborhoods throughout their city when they’re shopping for a home, taking each for a little test-drive to see how it feels. Some get a kick out of comparing new homes with remodeled homes and fixer-uppers. Others might just focus on new homes in various developments, trying to decide where they can get the most for their money. Historic homes in different neighborhoods are appealing to other home shoppers. But the real fun begins when I see their body language shift and they know they have found their new home. “I see their eyes glaze over and they begin decorating and visualizing how they're life style will fit into the new house. So often buyers express a warm memory that connects them to the house, says Tami” The next thing they know, they’re starting to talk about putting the TV here and their couch there and their book collection in that spot, she says. They notice the kitchen is open to the living room where they see the children playing legos while tey are cooking dinner. Basically, they begin to visualize themselves living there, Tami says. It’s a magical moment. Some buyers even find the home inspection a fun mystery game. They gleefully follow the inspector as he makes his rounds through the house, she says, soaking up everything they can learn about their soon-to-be home and ways to take care of it and its mechanical systems. It is a detectives game trying to figure out how past owners used the space. And then comes that big final step – closing. After all the fun of shopping for a home, finding one, making offers and counteroffers and reaching a deal, you get to sit down and agree to pay a great deal of money to actually live in the home of your dreams. Of course buyers need to get through the process of negotiations, escrow and paperwork. “But once it’s done and they see the keys,the home search is over and their new life begins." With Tami Winbury as your tour guide you can expect a pleasant journey. Tami Winbury Keller Wililams Realty 805-798-3412 http://www.keller-williams-homes.com |
Subscribe to:
Posts (Atom)