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
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