FHA is oficially changing its position on "flipping". That means it will now be possible for you to purchase a foreclosure and get FHA financing. Prior to this change, it was impossible to get approved for an FHA loan if you were buying a home that had transferred ownership in the previous 90 days. Under the new waiver, homes that were foreclosed on and are being sold by the mortgage holder or on its behalf may be purchased by FHA borrowers without regard for the 90-day seasoning period. However, if you purchase one of these properties, you will be unable to sell it before a 90 day period to anyone else wanting to use FHA financing. This is to prevent "flipping". They will also require 2 appraisals if the increase in value is 100% or more for sales that occur within 90 to 180 days.
This waiver is effective for FHA loans made after June 9, 2008, and will be in effect until June 9, 2009. After that, we'll have to see what happens.
This is a tremendous asset to anyone who has the opportunity to purchase a foreclosed upon property.
Right now, there are many of these in the Philadelphia area and its surrounding suburbs. If I can help you understand how to use this to your benefit, let me know and I will be glad to do so.
Can you imagine that you could get a great buy on a Foreclosure, get FHA financing with only 3% in the deal and then couple that with a low interest rate from the Pennsylvania Housing Finance Agency. This is an opportunity many people are missing. Talk with me and I will tell you how to do it.