FHA Flips!

HUD has long required properties to be held for 90 days by the seller before the property could qualify for an FHA mortgage loan. Effective June 9, 2008, HUD has waived the 90 day requirement in regards to homes being sold by lenders who foreclose on a property.

CLARIFICATION: After further review it appears that this waiver will only affect properties for sale by mortgage companies due to foreclosure and the companies that they transfer the proeprties to in order to sell. Investors who "flip" properties may still be subject to the 90 day rule.

This waiver is good for only one year and will expire June 9, 2009.

For more information on how this will impact Charlotte FHA mortgage loans, visit Charlotte Home Loans

_____________________________________________________

As a HUD approved FHA mortgage lender, Ed Nailor can provide FHA loans for home owners and home buyers in the Charlotte area (including Concord, Gastonia, Matthews, Monroe, Huntersville and Ft. Mill as well as all of North and South Carolina.)

Apply online for an FHA mortgage loan in the Charlotte areaApply online for your Charlotte area FHA mortgage loan
or call 704-651-8704 for your free mortgage consultation.

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Rainer
91,793
Patrick Lambert
ALLY Real Estate - Waikoloa, HI
Hawaii Real Estate Expert
Thanks for the info ... I have heard that plan several times this week but wasnt' sure what the full scoop was. Have a great day.
Jun 19, 2008 01:30 PM #1
Rainer
19,741
Hans Iduma
Gaithersburg, MD
Certified Mortgage Planning Specialist

This is really an exciting time to be an FHA approved lender isn't it.? Lenders welcome this news with great enthusiasm and bargain hunters will definitely benefit. Great article.

Jun 19, 2008 01:46 PM #5
Rainmaker
290,113
LaNita Cates
REMAX of Joliet - Joliet, IL

Very good to know. I had a closing less than a month ago where my buyer had to wait the 90 days and we had to push the date back. So, thanks!

Jun 19, 2008 01:52 PM #6
Rainmaker
281,779
Mike Mitchell
Real Living Kee Realty - Saint Clair Shores, MI
REALTOR (R)

Wow that's good to know... thanks for the info

Jun 19, 2008 02:16 PM #7
Rainmaker
931,678
Larry Brewer - Benchmark Realty llc
Benchmark Realty LLc - Nashville, TN

Ed - good information. THanks for sharing it, because I'm sure I will run acroos this soon.

Jun 19, 2008 02:40 PM #8
Rainer
2,877
Jim Burr
ListedByOwner.com - Camden, SC
Ed, Are you sure that the new rule applies to investor flips. I think I have read a couple posts that indicate the rule only applies to foreclosures. One of the posts had the rule attached to it. I am not sure which post, but will try to find it. Jim Burr
Jun 19, 2008 02:49 PM #9
Rainer
34,640
Carl Pruitt
FHA Loan Advice - Buford, GA
http://FHALoanAdvice.com

Here is a link to the actual waiver.

The wording is that the rule is waived " with regard to properties acquired by mortgagees, whether sold directly by the mortgagees or by their subsidiaries or by vendors to whom they have transferred titles to the properties for the purpose of effectuating sales of those properties." In the past, quite a few deals were killed because the lender had transferred title to a subsidiary or a company specializing in managing and liquidating foreclosures for lenders and the anti-flipping rule made those properties ineligible for FHA financing. Also, some mortgagees who were not state or federally chartered institutions. According to my discussions with the Atlanta HOC, this does not extend to private investors flipping homes for a profit. Those must still wait 90 days before being eligible for FHA financing.

Jun 19, 2008 10:58 PM #10
Rainer
69,002
Charlotte Home Loans Your Charlotte Mortgage Lender
Charlotte, NC

Carl, I believe you may be right. I have added the following to the main post:

"CLARIFICATION: After further review it appears that this waiver will only affect properties for sale by mortgage companies due to foreclosure and the companies that they transfer the proeprties to in order to sell. Investors who "flip" properties may still be subject to the 90 day rule."

Jun 20, 2008 12:44 AM #11
Rainer
2,877
Jim Burr
ListedByOwner.com - Camden, SC

I found the blog that has the link to the fha order.

http://www.activerain.com/blogsview/553662/FHA-suspends-property-flipping

Jim burr

Jun 20, 2008 06:49 AM #12
Rainer
83,069
Bonner Thomason
Keller Williams Realty - Kernersville, NC
CRS, ABR, GRI, e-Pro

In todays environment there is not the unbridled approach that investors were taking a few years ago. FHA has always preformed well and takes a good approach to home ownership.

B

Jun 20, 2008 06:54 AM #13
Rainmaker
210,196
James Wexler
wexzilla.com - Scottsdale, AZ

FHA is still great, better take advantage of the DPA programs before they are no longer October 1

 

this may not be the correct forum to ask . however ,

can you do loans for Phoenix condos?

I have contracts on 20 units $110K each

  • investor (not second home or primary)
  • full doc
  • 20% down
  • Non-warrantable
  • condo conversion
  • full-doc
  • seller will contribute 3% towards costs

If you think you may be able to do something , please give me a call

Aug 02, 2008 04:13 AM #14
Rainer
83,069
Bonner Thomason
Keller Williams Realty - Kernersville, NC
CRS, ABR, GRI, e-Pro

I was aware of this. I thought that an exemption had to  still be applied for.

Bonner

Aug 02, 2008 05:27 AM #15
Rainmaker
247,030
Jackie - computer-training-atlanta.com
770.498.7333 - Atlanta, GA
Learn to leverage technology to get more done.

Great article, Ed. Between HR 3221, FHA and Fannie changes, there's a lot of great content to use to educate borrowers. It's been an interesting couple of weeks.

Aug 11, 2008 10:17 AM #16
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Charlotte Home Loans Your Charlotte Mortgage Lender

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