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
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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.)
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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.
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.
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!
Wow that's good to know... thanks for the info
Ed - good information. THanks for sharing it, because I'm sure I will run acroos this soon.
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
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.
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."
I found the blog that has the link to the fha order.
http://www.activerain.com/blogsview/553662/FHA-suspends-property-flipping
Jim burr
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
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
If you think you may be able to do something , please give me a call
I was aware of this. I thought that an exemption had to still be applied for.
Bonner
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.