How Long Do I Have To Keep A Mortgage Before I Can Resale
i am just getting into buying homes and fixing them then reselling the homes. i want to use a mortgage company for all the loans and do simple intrest intrest only loans. my friend told me i would have to prove the increase in value of the home and would have to hold the loan for 90 days. is this accurate? i have an s corp and a tax id # is there a limit to the number of loans i can take out at once?
[ Edited by evanoff213 on Date 04/13/2004 ]
I dont know about the other stuff, but as far as the 90 days goes, that sounds like the new FHA rule. They wont do a loan in which the previous owner has held the house for less than 30 days. I wonder if you can put in the purchase agreement that in X amount of days or sooner at your written request, the previous owner must transfer ownership to whoever you specify. That way you dont have to take possession of the property, but you can still do the repairs and then just put the home directly in the name of whoever you sell the home to. Not sure if you can do that or if its legal, but its just idea.
The REI Man
That is not correct. You do not have to hold a property for 90 days. There are banks that will give a buyer a loan the same day. (as long as it is clear to close)
If you want to sell the property you wll have to make sure of the financing that your buyer has. And it is not discrimination if the buyer can only be approved FHA, the seller does not have to hold the property for them.
IIf you plan on doing deals like this, you should network with someone who has qualified buyers. This would eliminate problems of financing.
If you have a broker, real estate agent,or lender you use talk with them. They will be able to direct to the right resources.
There is no limit to the number of loans you can take out. There are loan limits for specific programs. I have a friend that just closed on 15 properties with 15 loans last week.
You just need to find the right people that will work with you, not against you
Lori
[addsig]
I work with a guy who bought 15 houses this year. After the 10th house, the banks started turning him down, so he uses all hard money lenders now. They don't have any problem giving him the money.
I don't know of any laws that limit the # of loans you can have, however some banks may deny you because they think you have overextended yourself.
Some mortgage brokers and Hard money lenders may have a prepayment penalty, or they may require you to hold onto it for a certain amount of time. You should ask those questions before you get too far down the road.
good luck.
Not quite sure exactly what - you are asking about rehabbing in the wholesaling forum. Is there something implied that you are not stating?
Will you be able to get a loan on a house that needs repair? It is hard to get a loan in a corporate name. Some lenders limit the number of loans that will extend to a single entity. They want to limit their exposure.
The "chain of title" or "seasoning" requirements is different for each lender. FHA is a flat no, if the owner has had title for less than 90 days. That is the only case that I know of with a definate NO.
Brenda