In the past a borrower could not buy a house that the current owner had owned for less than 90 days. The new borrower could not even make the offer until the owner had owned the property for 90 callendar days.
On January 15, 2010 FHa released a proposal to waive the 90 day rule for a period of one year starting February 1, 2010. There are some minor things to keep in mind though. All transactions must be "arms-length". No idetity of interest can exist between the buyer and seller. The seller can not profit more than 20% from the transaction.
This previous 90 day wait rule was to prevent property flipping. But with the amount of repo's and bank owned properties, now an investor can purchase them, fix them up and sell them within the 90 day period. This is a positive move to aid all aspects of the current market.
Mortgage Advisor
425-238-2095
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