Buying A Home
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Flip house extending mortgage approval
We were told the bank had everything they needed for our mortgage application/approval and we were on track for our November 14th closing date. Today, the underwriter got the title and learned that the house was a flip and now we have to go through a more rigorous process to get the mortgage (which will obviously take longer).
Since we were told everything was on track for the 14th, we gave notice for our apartment. I'm fairly certain we won't be closing on time which means we're going to have to move everything TWICE (once to a storage unit, then to the house). I'm extremely frustrated/freaking out.
Does anyone know why the house being a flip has any impact on the mortgage approval?? The house appraised out without any issues.
Sigh...
Re: Flip house extending mortgage approval
Are you getting an FHA mortgage?
There is a 90 day flip rule pertaining to investment properties. The owner of the property must own the home for 90 days before sale can take place. This rule was temporarily suspended thru Dec 2011, however a lot of banks are still using the 90 days. Sometimes banks will required 2 appraisals when dealing with a flipped house to ensure compliance with 20% rule. Seller has to show acquisition, carrying and renovation costs to lender.
This sounds like is happening in your case. You should call your REA or loan officer for more specifics.
GL!
This, definitely. When we were looking for houses, we saw some that were definitely a hot mess underneath. They looked pretty, but if you opened the fuse box there were fuses going in bizarre places, or the hot water heater was ancient and there were cracks in the foundation. Most flippers don't care how long the house lasts, they just want it to be pretty enough and last long enough to earn them a nice profit. Our house was a flip, and we got lucky that the builder was pretty good when they originally built the house, because our flipper was LAZY. We had to fix a bunch of stuff once we moved in. The paint, for example, is so cheap that it wipes off. We had to put a new sink in the kitchen in the rental unit, because they put in a new countertop and a BAR SINK. Who puts in a mini sink and no dishwasher in a kitchen?! Stuff like that.
Thanks, everyone! It does make sense, I guess. Just very frustrating! I think the flipper did a good job. He's a contractor and we had a very thorough inspection and the inspector said the house was in great shape so hopefully we'll be okay in terms of the house. I do know that they're getting things from the seller so hopefully that moves quickly.
I know everyone goes through this long process now with the bank - I just needed to vent!
This is exactly what happened when we bought our home; we had two appraisals and the seller/investor had to show the amount of improvements done on the house. We had no problems after that since the appraisal came back the same both times.
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