Great News On February 1, 2010 Federal Housing Administration ( FHA ) has suspended their 90 day rule for one year unless otherwise extended or withdrawn. Now you investors will be able to renovate all those homes that do not qualify for financing or unlivable and immediately turn and sell them to willing buyers.
Also, now FHA approved buyers will not lose out on those newly renovated homes.
There are some qualification for the 90 day Rule HUD has put in place;
All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction. Some ways that the lender can ensure that there is no inappropriate collusion or agreements between parties is to assess and determine the following:
a. The seller holds title to the property;
b. LLCs, corporations, or trusts that are serving as sellers were established and are operated in accordance with applicable state and Federal law:
c. No pattern of previous flipping activity exists for the subject property, as evidenced by multiple title transfers within a 12-month time frame (chain of title information for the subject property can be found in the appraisal report);
d. The property was marketed openly and fairly, via MLS, auction, For Sale by Owner offering, or developer marketing (any sales contracts that refer to an "assignment of contract of sale," which represents a special arrangement between seller and buyer may be a red flag).
This is a great change for all involved parities.
Call today for more information or a personal list of homes.