USDA loans and 90 day flips

Most real estate professionals know that properties “flipped” in less than 90 days can be problematic when it comes to financing.  A typical “flip” is where a property is bought by an investor, fixed up, then put right back on the market for sale.  If the property is being re-sold in less than 90 days, underwriting and appraisal requirements can tighten up for the new person buying the property.

For USDA loans, there are no additional requirements for property flips less than 90 days.  As long as the property appraises, and whatever work was done on the property is supported in the new sales price, then USDA treats these like any other transaction.

If you live in an area where USDA financing is available, and you find yourself interested in a property that is being re-sold after being fixed up by an investor, the USDA home loan may be a great financing option to consider.

Baxter Scruggs is a mortgage banker specializing in USDA loans in California, NMLS #156370. He can be reached at, or at 760-497-7705, or toll-free at 877-347-0004, ext. 226. Licensed by the California Department of Business Oversight under the California Residential Mortgage Lending Act.  The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Terms and conditions apply, all loans subject to underwriter approval. Subject to change without notice. Guild Mortgage Company NMLS #3274

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s