Showing posts with label flipping rule FHA. Show all posts
Showing posts with label flipping rule FHA. Show all posts

Kentucky FHA Property Flipping Guidelines

Kentucky FHA’s resale restriction period is defined as the time between the date of acquisition (original settlement date) and the date of execution of the new sales contract (the new loan closing date)

  • Re-sales of a property less than 90 days after acquisition are not eligible for an Kentucky  FHA insured mortgage
  • Re-sales occurring between 91 and 180 days of acquisition with a sale price 100% over the original purchase price must have the value supported by a 2nd appraisal
  • Re-Sales occurring between 91 days and 12 months of acquisition with a re-sale price 5% greater than the lowest sales price of the property during the 12 months preceding the sales contract may be subject to a 2nd appraisal
  • Exceptions to re-sale time restrictions:
  1. Sales of Kentucky HUD owned properties
  2. Sales by another agency of the United States Government of REO single family properties
  3. Sales of properties that were acquired by the sellers through inheritance
  4. Sales of properties purchased by an employer or relocation agency

Kentucky  FHA Property Flipping Guidelines
Joel Lobb (NMLS#57916)
Senior  Loan Officer
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346

Text/call 502-905-3708
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916

Popular Questions about getting a mortgage loan in Kentucky?

Popular Questions about getting a mortgage loan in Kentucky?

Are VA Loans the only type of mortgage loan that require a Termite Report?

Yes. VA loans require a clear termite report on both purchases and refinances. USDA, FHA, Fannie Mae loans do not require a termite report unless noted in the appraisal report.

kentucky va mortgage loan termite requirements

Can a buyer have two VA loans at once?

  Yes, a Veteran or active service member could have 2 VA loans at once. This is a pretty complex process but it can be done. I have done a few in my mortgage career.

Can I purchase a home without PMI and only put down less than 20%?  

Yes you can. There are two ways to do this on Conventional loans only. If you have a high credit score, say over 740, and your debt to income ratio is less than 45%, you can buy a home without having to pay mortgage insurance monthly. The offset of this, is it usually entails the lender increasing your interest rate by .25% to 3.375% to cover this risk. For example, if you got quoted a rate of 4% on a 30 year fixed with borrowing paying mi monthly, then you could increase the rate to 4.375%, and drop the mi. You have to weigh the pros and cons to set if it makes sense. The term is called lender paid mi.

On Government loans financed with FHA, USDA, and VA, you don't have this option.

Can I put down less than 20% on a second home purchase?

 Yes, 2nd home purchases can be as low as 10% down plus there are some very affordable PMI options for buyers with great credit scores. USDA, FHA, and VA are not usually used for 2nd home purchases because they are mainly used for primary residences.

Isn't there a time that the seller must own a property so that the buyer can use an FHA loan?  

Yes, it is called FHA Flipping Rules.  It is pretty flexible but it flat out must be longer than 3-6 months and may require a 2nd appraisal depending on the acquisition  costs and how much they are selling it for.

Joel Lobb
Senior  Loan Officer

text or call my phone: (502) 905-3708
email me at
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, ( Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.