FHA Financing for Flips

By
Real Estate Broker/Owner with Realty Masters of FL and Keller Wiliams

Important News!

 Effective for all sales contracts dated on or after February 1, 2010.

Certain property may be resold and financed using FHA insured financing without waiting 90 days.

FHA has temporarily waived the 90 day wait period, on certain transactions. These recently purchased homes may be sold and financed with FHA insurance

•Ø  Private sellers and investors are now eligible to take advantage of this waiver.

 •Ø  These transactions must be arms-length, with no identity of interest between the buyer and the seller or other parties participating in the sales transaction.

 •Ø  In cases where the sales price is 20% or greater than the seller's acquisition, the lender must justify the increase in value with supporting documentation of renovation, repair and rehab work.

 •Ø  If no work was performed the appraiser must provide an appropriate explanation of the increase in property value since the prior title transfer.

 •Ø  The lender must order a property inspection and provide that report to the home buyer. Buyer's may be charged for the cost of this inspection.

If you have transactions meeting this guideline you are advised to read the waiver in its entirety here: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

 

Comments (7)

Ken's Home Team LLC. | 360.609.0226 | Portland, OR & Vancouver, WA Real Estate Team
Ken's Home Team LLC. - Vancouver, WA
- SOLD IS OUR FAVORITE 4 LETTER WORD -

thank you, I am goin to send this to my investors.  Thank you

Jan 16, 2010 01:06 AM
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

It is nice to see an occasional bone thrown to the investors we all know. I don't think the current market would allow this to run out of control.  I like this waiver.

Jan 16, 2010 01:08 AM
Duane Murphy
Expert Real Estate Partners LLC - Appleton, WI
Broker- Owner-Real Estate -

This is great to know!!!   Thanks!!

Jan 16, 2010 01:08 AM
David Saks
(retired) - Memphis, TN

Nice to see that the restrictions are relaxed, but with contingencies in place that insure the integrity of the process.

Jan 16, 2010 01:14 AM
Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

Just heard about this development.  Great news for first-time buyers hoping to qualify for the Tax Credit.  In our market, many of these "flips" are aimed at the first-timer and this will make more homes available to them.

Jan 16, 2010 02:48 AM
Matthew Naumann
Exit Realty Charleston Group - Goose Creek, SC
Goose Creek, SC Real Estate Agent

Pam,

Great Post. Thanks for the great news.

Matt Naumann

Jan 16, 2010 03:19 AM
Wendy Bowes
Corcoran Group Real Estate - Palm Beach, FL

Great post, I am happy to hear this news. I work with several end buyers and like it that they will now let these go through. I love it when a plan comes together!

Jan 17, 2010 01:56 AM