fha financing: UPDATE: BEWARE the one year waiver on the 90 Day Rule - FHA Financing
- 03/25/10 03:24 AM
As a follow up to my previous post - most folks know that FHA requires 91 days to pass before a contract can be written on a property that has changed ownership in order for the buyer to qualify for an FHA loan. This is called the "90 Day Rule" and is designed to "protect FHA borrowers against predatory practices of ‘flipping' where properties are quickly resold at inflated prices to unsuspecting borrowers" for a quick profit. On Friday, January 15th, HUD announced a one year "waiver" taking effect on Monday, February 1st lifting the 90 Day Rule http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf to which … (2 comments)
fha financing: HUD announces increase in UFMIP effective April 5th
- 01/22/10 05:13 AM
Most folks know that FHA requires an Upfront Mortgage Insurance Premium (UFMIP) in addition to the monthly mortgage insurance for a government loan. On Thursday, January 21st, HUD announced an increase of this premium from the current 1.75% to 2.25% for FHA loans for which the case number is assigned on or after April 5th, 2010. Read in full here http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-02ml.pdf regarding this update. WHAT THIS MEANS TO YOU! Although the UFMIP is typically financed into an FHA loan (thus the borrower doesn't have to come up with the funds at closing), this increase is worth discussion. Consider a first time … (1 comments)
fha financing: HUD announces one year waiver on 90 Day Rule
- 01/18/10 10:10 AM
Most folks know that FHA requires 91 days to pass before a contract can be written on a property that has changed ownership in order for the buyer to qualify for an FHA loan. This is called the "90 Day Rule" and is designed to "protect FHA borrowers against predatory practices of ‘flipping' where properties are quickly resold at inflated prices to unsuspecting borrowers" for a quick profit. On Friday, January 15th, HUD announced a one year "waiver" taking effect on Monday, February 1st lifting the 90 Day Rule under (most) circumstance. Read in full here http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf regarding those requirements. WHAT … (5 comments)
As a follow up to my previous post - most folks know that FHA requires 91 days to pass before a contract can be written on a property that has changed ownership in order for the buyer to qualify for an FHA loan. This is called the "90 Day Rule" and is designed to "protect FHA borrowers against predatory practices of ‘flipping' where properties are quickly resold at inflated prices to unsuspecting borrowers" for a quick profit.
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