USDA don't cover flip homes? Ahhhh!!!

[xazilizax]

I just met with my LO.  I have a house under contract and everything.  The house is a flip and she said the USDA might not cover it.  Is that true?  She said she will have to send my loan off to somewhere else (or something like that)....to see if there is anything that can be done for USDA to approve it.  If not, then I would have to get an FHA loan.  I didn't want to get an FHA loan in the first place because I don't have the 3.5% to put down.  I only have the remaining $1600 in closing costs to pay.

Any advice???

[JM-AM]

"Flipping Rule"- USDA does not have a specific guideline regarding how long the subject property must be owned by the seller.  It is the lender's responsibility to insure that the appraised value is based on the most current and accurate data available.

That is from the USDA site itself.

[xazilizax]

By the way, I live in Georgia.  The seller had the house for 3-4 months only.

[JM-AM]

While some loan programs were going to put restraints on flipping homes, most of them have been delayed for a few more years.