FHA Flips Harder to Finance within the 90 Day acquisition period.

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Mortgage and Lending with Amerifirst Financial
https://activerain.com/droplet/SD

The waiver put into effect last January has expired. Many of the big FHA lenders will no longer purchase any properties that have been bought and resold within 90days in which the property is more than 20% of the acquisition cost of the property. So a property is purchased for $100,000 it cannot be financed using FHA financing if the purchase price of the home is more than $120,000.

Once 90 days have passed the property is eligible for FHA financing, however there will be a requirement of a 2nd appraisal. The change in this is that the 2nd appraisal must also be a FHA appraisal and can not be paid for by the buyer.

What is so disappointing about this is, many of the homes I financed last year were flips. They were "value packed" and brought up to FHA standards for my clients.

As of right now there is no news of extending the waiver.

Kevin Lambe

Amerifirst Financial

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Katerina Gasset
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Hello Kevin,

Thanks for sharing and welcome to ActiveRain!

This is a great place to learn and share anything you need to know about the real estate business or about getting the most out of blogging and marketing yourself on line. If you have any questions just stop by my blog. I am an Ambassador so I am here to help you make the most out of ActiveRain.

Have fun!

Katerina

Jan 21, 2011 01:56 PM #1
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