Realtors,
If your selling a home and working with an investor who bought at a substantial discount and now is making a substantial profit of 100% or more FHA will have an issue with this. Please be sure to call the loan officer and have a talk with He/She to fully document the seller profit. Per FHA a substantial profit is over 100%.
Example$100,000 purchase turns and sales for $200,000 if a substantial profit but if Seller/Investor puts $50k into work on the property this is now acceptable per FHA. This can always change of course based on the current market. But always fully document and don't blame the loan officer for not catching it as it's your responsibility to fully disclose if you don't want to take the Risk of a delayed closing.
So my main point is "communication is key"
Thanks JH!
Jacob C. Haddan
Sr. Loan Officer
Freedom Financial Services
10463 Park Meadows Dr. Ste 210
Lone Tree, CO 80124
Main: 303-663-5266 Ext 112
Fax: 303-680-1995
Cell: 720-210-7898
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Great news for Jumbo loan borrowers 2011! Rates have dropped to record lows. Loans from $400k to $1,500,000 with rates as low as 3 to 5% depending on the term. Call me today 720-210-7898
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