WOW, no more FHA 90 day waiting period on flipped foreclosures.
Ah great news, I have had so many FHA buyers want a home that has been flipped, but can’t wait the 90 day seasoning period. If you are not familiar with this, here is out it works. An investor will purchase a foreclosure, rehab it, and put it on the market as soon as it has been flipped. There are stipulations to this and not all homes will qualify. But it does open the door a little for buyers with an FHA loan.
The way the old way would work, is the home had to wait a 90 day seasoning period to qualify for an FHA loan. This would limit FHA buyers to homes that were in really bad shape or a short sale. In this market that is the majority we see, so when a home comes on the market that has already gone through the flipping process it is nice because most home buyers want a “move in ready” home. A lot of people can’t see past holes in the walls, missing light fixtures and all of the appliances are gone.
When Realtors see homes that are already “flipped” with all of the “must haves” we find there are a lot of other people interested as well. I just closed a deal on a flipped property with a conventional loan with 10% down. The listing Agent was sceptic that we could close a conventional loan with only 10% down, but it closed in 30 days. So it’s nice now to see we can do FHA loans on flipped foreclosure properties without the 90 day seasoning period.
Below is more information on the new revision:
On Friday, FHA announced the suspension of the anti-Flipping 90-day waiting period.
Prior to September 14, 2009, FHA products were denied to buyers purchasing homes from investors that buy homes, rehab them, and sell them within a 90-day period. Previously, the only option to purchase these homes was through conventional financing (which requires a higher down payment) or a cash-only purchase.
This revision allows home buyers to expand their market when searching for a home and gives them the opportunity to secure a much lower down payment. More investors and buyers will be encouraged to purchase homes due to this major change.
Take a look at the revision:
Section 203.37a(b)(2) of the FHA regulations, 24 CFR, is hereby waived for a period of one year, September 14, 2009 through September 13, 2010, with regard to sales of previously foreclosed or abandoned properties acquired and resold by for-profit and non-profit entities using funding from and performing under agreements with state and local government agencies under the NSP program.
http://www.nls.gov/offices/hsg/sfh/waivpropflip.pdf
If you are in the market to purchase a home and want more information on this. Please contact me today, Rachel Anderson 480-309-7968
This is missleading information and needs to be removed! This waiver only applies to properties acquired by state and local govenments with federal grant funds through the Neighborhood Stablization Program.You need to educate yourself before posting publically. Read the entire announcement on HUD's website. http://www.nls.gov/offices/hsg/sfh/waivpropflip... You should remove or edit your post and quit passing along ignorance.
In my post I specify about the NSP program and that it doesn't apply to all flipped properties. It is however something that I posted and will keep posted, I think people need to read the entire post before jumping to conclusions. Thanks.
using funding from and performing under agreements with state and local government agencies under the NSP program. This is the only way the 90 rule is waived.
This is missleading information and needs to be removed! This waiver only applies to properties acquired by state and local govenments with federal grant funds through the Neighborhood Stablization Program.You need to educate yourself before posting publically. Read the entire announcement on HUD's website. http://www.nls.gov/offices/hsg/sfh/waivpropflip... You should remove or edit your post and quit passing along ignorance.
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