CNBC reported this week that house flipping is at a 10-year high. But before your client buys a property, you must research how long it’s been titled. Most lenders will not accept a property titled less than 91 days.
Flipping a house may also impact the financing a buyer can receive. For example, the Federal Housing Administration (FHA) loan, a popular loan for first-time homebuyers, has strict rules for financing a recently-flipped property. The FHA will only finance a property titled more than 90 days. Some lenders may also require a second appraisal to confirm additional value.
Photo courtesy of Mark Moz (Flickr)