The waiver put into effect last January has expired. Many of the big FHA lenders will no longer purchase any properties that have been bought and resold within 90days in which the property is more than 20% of the acquisition cost of the property. So a property is purchased for $100,000 it cannot be financed using FHA financing if the purchase price of the home is more than $120,000.
Once 90 days have passed the property is eligible for FHA financing, however there will be a requirement of a 2nd appraisal. The change in this is that the 2nd appraisal must also be a FHA appraisal and can not be paid for by the buyer.
What is so disappointing about this is, many of the homes I financed last year were flips. They were "value packed" and brought up to FHA standards for my clients.
As of right now there is no news of extending the waiver.
Kevin Lambe
Amerifirst Financial
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