Posts Tagged “HECM”

Someone asked me the other day if a Reverse Mortgage could be done on a property that had recently been acquired by the Seller (less than 90 days ago) Unfortunately for Reverse Mortgages (also known as HECM , i..e Home Equity Conversion Mortgage ) HUD doesn’t allow property flips.

Below is an additional FHA related flip rule :
If a property is being financed with the standard FHA loan (203b) and the resale occurs between 91 and 180 days where the new sales price exceeds the previous sale price by 100% or more, FHA will require additional documentation to validate the new value of the property. This often involves at least a 2nd appraisal, but also possible proof of repairs and remodeling work to the property.

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