Arizona Flips & Conventional Loans

Recently, the lending game has changed with regard to lending for Phoenix area buyers using Conventional financing to purchase a “flipped” home (defined as a change

Conventional Flips Phoenix Arizona

in Title in the past 120 days NOT when owner is Bank, FNMA, FHLMC, HUD or Lender). Here is the short version – most Arizona Mortgage lenders ultimately sold their Conventional Flip loans to Wells Fargo as the end investor/servicer. Wells Fargo recently gracefully bowed out and said “no thanks, we do not want to buy Conventional Flip Loans in Arizona anymore.”

Instantly, a large portion of Phoenix area mortgage lenders were without a viable option with regard to Conventional Flip Loans. The good news is, if a mortgage lender is qualified and set up to sell loans directly to Fannie Mae there is still an excellent option for Conventional Flips.

Is a 2nd Appraisal Needed on Arizona Flips?

The answer is no. Technically the answer is “not necessarily.” As long as the Phoenix area property is priced right (an admittedly vague phrase in this market) and value is supported on the appraisal we do not need a 2nd appraisal. However, if the mortgage underwriter determines that the value is not substantiated by the original appraisers report, a second appraisal may be required OR a review of the original appraisal by a 3rd party company may be ordered. These flip mortgage loans require careful preparation on the lender side as there are a few quirky requirements that must be met ahead of time in order to avoid challenges in underwriting (i.e. – borrower needs to provide 3 months of bank statements versus 2 etc…).  As your Arizona flip mortgage lender I will make sure we cover everything for you.

By Jeremy House

 

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  1. […] past, whenever a borrower was purchasing a home that was considered a flip and they were using a Conventional Loan to finance the home there was a good chance 2 appraisal may be required.  Then, that all changed. […]

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