FHA Flip rule - 1 day owned by seller OK

Mortgage and Lending with VanDyk Mortgage - VA, FHA, Conventional, VA Jumbo, Jumbo, Purchase Loans, & Refinance, Direct Lender NMLS 220268 / 3035

FHA Flip rule - 1 day owned by seller OK

The Seller seasoning requirement on our FHA Loans is one day.  That is correct, one day.  While FHA has released guidance for lenders allowing the Flip Rule to be Waived for all Sellers until Feb 1, 2011, many lenders still require that sellers own a home for 90-180 days before it is eligible for their FHA Financing. We do not require these waiting periods for FHA Loans.

Seller Seasoning simply means how long the current owner has owned the property (as recorded on Title Records).   Seller seasoning is also called Owner seasoning.   The contract date must be after the date of acquisition for the seller,  a redated contract is not allowable. 

This is in complete alignment with the HUD guidelines for FHA Loans.  The other lenders that have added restrictions are reducing the eligibility for Homebuyers to use FHA Loans to purchase homes from investors who may have purchased the home at a foreclosure auction, or direct from a bank.   This opens the door for more homes to be eligible for safe, secure, and sound FHA financing.   Many of these homes have been completely rehabilitated, making them a more desirable home to buy:  they are Turn key homes.

Our FHA Rules can help you avoid the issue of FHA seller seasoning, FHA Flip Rules, and big bank rules that restrict access to quality FHA Loans.

Get started on your FHA Home loan with the FHA Loan Pros at VanDyk. Visit us at http://www.vandykfunding.com/ to apply online, or call 760-752-4480 and ask for Brian Skaar.

There are some guidelines for FHA Flips under 90 days that will require some attention.  If the home increased in price more than 20% from the sellers acquisition cost, the increase in price will need to be justified with renovation records,  the sale must be arms-length (No Idendity of Interest between buyer and seller),  multiple flipping within previous 12 months is a red flag, no assignment of contracts, property inspection may be required, and buyer's agent cannot be the seller of the home.

VanDyk Mortgage is a FHA Direct Lender offering FHA & FHA Jumbo Loans throughout our lending areas including California, Washington, Los Angeles, San Diego, Riverside, Temecula, Murrieta, Orange County, San Jose, San Francisco, Seattle, Puyallup, Auburn, Kent, Everett, Tacoma, and everything in between.



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Brian Skaar

VA, Jumbo, FHA & Conv Direct Lender (760) 752-4480
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