We are getting numerous “FLIPS” in our office, as we have several lenders who accept them for both FHA and conventional purchases (even NON-owner occupied). A Flip is a property that changed title (to an owner other than a foreclosing bank) in the previous 90 days.
Remember, however, that lenders scrutinize Flip appraisals much more closely. Our Realtors (listing and selling agents alike) have been doing a beautiful job of meeting the appraisers at the property and explaining/justifying WHY the value increased.
It is absolutely necessary that the appraiser make a strong case as to why the FLIP investor bought the property for $200,000, for example, and can now sell it for $300,000. And the Realtors involved in the purchase need to provide as much info as possible to the appraiser, such as recent improvements, or the removal of illegal units that made the property ineligible for financing previously.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167