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Many have recently heard that they FHA eliminated the seasoning issue for flipping distressed properties. This is PARTIALLY true. The FHA did eliminate its position that title had to season before transfer of title on a former FHA property. The FDA now allows for transfer of title without seasoning of title as long as the proceeds of the transfer do not exceed 20% profit. This is good news, and the better news is that there are creative solutions to allow you to transfer title with no seasoning AND without the 20% profit limitation. As many might guess, it is a trust. … (2 comments)
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