More and more, lenders will be asking very specific questions up front questions about the seller of a property. Particularly, how long has the seller been on title.  Here are the newest rules:

  • Rural & Conventional Financing - Seller must have owned property for 6 months.
  • FHA Financing - Seller must have owned property for 90 days.

There are some exceptions, but lenders are getting very picky. FHA is getting picker due to early payment defaults rising as the shear number of borrowers choose FHA loans.

 

 

2 Comments on New Flipping Rules for Rural Housing Loans

OCT
27
287,263 Points 4 Featured Posts Outside Blog

Great one more investment headache. I can hold them for 90 days and be ok but now 6 months? HMMM that will be a new pain!
6:08am • #1
837,600 Points 213 Featured Posts Localism Sponsor Outside Blog Hit Router

Seems to me that if the buyer defaults are higher with investor owned properties, FHA should be looking at the mortgage companies that qualified and approved these buyer loans. 

It doesn't take a Rhodes Scholar to know understand that the cause of loan defaults is in faulty loan approval/underwriting, not how long the seller had title.
6:09am • #2

Leave a response…

(optional)
What does the graphic say?
 
Rainmaker_large

Molly Lionberger

Easton, MD

More about me…

Prosperity Mortgage

Address: 1315 Mt. Hermon Road, Salisbury, MD, 21804

Office Phone: (443) 523-5599

Cell Phone: (443) 523-5599

Email Me

The purpose of my blog is to provide mortgage industry information that will help homebuyers obtain the best financing for their individual needs and to help realtors close more deals. Knowledge is power. With the changing of the rules within the mortgage industry, it is more important than ever for realtors to know basic credit guideline rules.


Links

Archives

RSS 2.0 Feed for this blog

Find MD real estate agents and Easton real estate on ActiveRain.