THE 411-FHA CLARIFICATION

There has been some controversy on FHA loans regarding whether a property can be purchased within 90 days after the last transfer of title.

There has been some verbage going around indiciating that the 90 day rule has been eliminated now. One of my realtors had pulled up some information on an e-mail that was circulating, and the bottom line is:

The 90 day rule is exempted IF the property is a bank owned property owned by a bank or an investor. If one wanted to purchase the home and sell(flip) it within 90 days, we would have to go conventional or VA. FHA would still have that 90 day wait because of the fact that someone, for investment purposes, wanted to go in and purchase that property.

BY THE WAY, FOR A STREAMLINE FHA REFINANCE, come Jan 1, 2010, it is no longer just take an application, get title, and be done with it. Now we have to document income and assets. Anyone with an existing FHA loan that may not be able to document income will need to do this Streamline before the end of the year.

Hope that clarifies everything.