With the HUD rules , is it still possible to get insurance on a loan if you flip a house before 90 days?

Answer 1

Your question is not clear. Are you buying a reposessed house or talking about mortgage insurance because you have less than 20% down?

No one pays mortgage insurance anymore. Get an 80% first mortgage, then a 20% 2nd mortgage or equity line if you qualify.

A bigger question you should be asking yourself is whether or not there is a prepayment penalty on the loan you are getting. You could lose all your sweat equity by not carefully checking that out.

If you really want the mortgage insurance because it is a cheaper way to go than the 2nd mortgage or equity line, and there is no prepayment penalty, then why do you feel obligated to tell them you are flipping it? It is none of their business.

Answer 2

The HUD rule regarding "insurance" and "90 days" has to do with a buyer using an FHA insured mortgage to buy a home that was aquired less than 90 days earlier. They cannot. This applies whether you bought the home from HUD, VA, a bank, your neighbor or your mom. It has to do with HUD's "anti-flipping" rules. It doesn't mean you can't flip the house as fast as you want, it just means the buyer can't use FHA financing. If it's under 180 days, HUD may require two appraisals to allow it to go FHA. I think that's only if you're trying to sell it for twice the aquisition cost.

Answer 3

If you or another buyer is looking to buy a piece of property that was purchased less than 90 days previously, you/ they can not use FHA insured financing. A sales contract can not be entered into before the 91st day after the recordation of the last sale.

Hud will require a second appraisal if the home is sold (entered into contract) between 90 and 180 days of recordation of the last sale.

Since all laws vary on a state level, you may want to check with a licensed broker/agent in your area.

Answer 4

If you are buying a hud property that they foreclosed on you ahve to read the contract. They usually try to sell them so that they are owner occupied. If this is the case then you need to be in the house for 12 months. If it was not to be owner occupied I believe you do whatever you want.