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FHA 90 day rule(anti flipping) has changed. And its good news. A must Read

Reblogger Stephen Kendrick
Property Manager with Keller Williams Realty Southwest

This is great for investors.  Contact me if you are interested in looking for investment properties. 

Original content by David Krichmar NMLS #293883

The 90 day rule for FHA loans is this: the seller must have owned the home for at least 90 days before selling it to a buyer who is using FHA financing.  A while back they removed bank foreclosures from this rule.  Now they have allowed individual sellers to sell their home before 90 days.  This is GREAT news.  But there is some things to know and consider:

 

  1. FHA rule is they allow the seller to technically double what they bought the property for.  But over 100% will require a 2nd appraisal
  2. I can tell you for a fact, most banks will have an issue with an increase like that.  most banks will want a reasonable increase or proof of the work that was done to cause this decrease.  Or may also order a 2nd appraisal
  3. if it was bought recently then the original sale of the property could be used against it as a comparable sale.  Of course this depends on the appraiser and how many comps are available in the area.  I believe this would be a worse case situation

 

 

Bottom line, this is still great news.  Please call or email me with any questions.

 

 

www.DaveYourMortgageGuy.com

"Helping You Thru the Whole Process"

David Krichmar

Mortgage Banker/Broker

Moncor Mortgage Bank

cell:832-689-6012

David.Krichmar@gmail.com

 

 

 

Ralph Gorgoglione
Metro Life Homes - Palm Springs, CA
California and Hawaii Real Estate (310) 497-9407

So an investor can now officially flip the home to an FHA buyer in less than 90 days from them taking title, correct?

Mar 05, 2010 02:37 AM
Stephen Kendrick
Keller Williams Realty Southwest - Sugar Land, TX
Making Property Management Manageable

Yes, as long as a few conditions are met, the investor can flip homes to FHA buyers. 

Mar 05, 2010 02:57 AM