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Starting February 1, 2010, FHA will be lifting their 90 day ruling on the purchase of a flipped house. If a home buyer was trying to purchase a home that had been flipped, the buyer was not able to get an FHA loan unless and until they waited for a period of at least 90 days from the time the investor purchased the house.
Now, You CAN’T Buy That House may just NOT apply at least for 1 year!
HUD has agreed to waive the 90 day flip rule temporarily for one year.
There are a few conditions, though:
- All transactions must be at least arms length
- If the seller’s sales price is 20% or more above what they paid for the property, additional appraisals/home inspections will be required.
Interpretive policies of lenders are yet to be implemented so I’m sure there will be more as time develops and lenders determine if they want to accept HUDs new ruing.
Some agents think this only applies to FHA loans but it also applied to many conventional loans, as well.
Click to read the original HUD Ruling on Buying Flipped Property.
Related Articles:
Sacramento Will Become Real Estate Flippers
Great news Gena! Thanks for the FHA update!
PEOPLE UNDERWATER SHOULD CONSIDER A NEW PROGRAM WE’RE INTRODUCING, A SHORT REFI.OUR ATTORNEY’S NEGOTIATE WITH THE BANK AND GET THEM TO TAKE A PAYOFF OF USUALLY 90% OF THE CURRENT APPRAISED VALUE RATHER THAN HAVE THE BORROWER WALK. WE THEN REFINANCE THE CUSTOMER WITH A NEW LOAN AND A NEW LENDER BASED ON THE CURRENT VALUE.THE ONLY CATCH IS THAT THE BORROWER HAS TO HAVE DECENT CREDIT, 650+ SCORE, AND BE CURRENT ON HIS PAYMENTS FOR AT LEAST A YEAR.WE’RE EXPERIENCING ABOUT A 95% SUCCESS RATE WITH THIS. CONTACT ME IF INTERESTED IN MORE INFORMATION
Many of these folks don’t have good credit but if this will work for even 1 person, I say GREAT. It is not good blogging comment etiquette to put your contact information within your comment so I have deleted it. If someone needs your information, I will share your email with them. Thank you for popping in to Sacramento Real Estate Voice and sharing with our readers.