The FHA Commissioner announced that FHA will be waiving the 90 day seasoning regulation on properties that have a contract dated on, or after February 1, 2010. Up until 2/1/10, as an investor/flipper, you had to wait until the title was in the current owner/investor's name for 90 days before it could be sold to a new purchaser. Of course, there are guidelines for this, just like anything else. However, this is great news for investors who slowed down due to the restriction, or people with extra cash who want to get into investing and flipping real estate.
Remember real estate is about the only investment, that over the past 30 years, has had an average appreciation rate of 4 percent. Not many other investments have that kind of consistency rate.
Certain property may be resold and financed using FHA insured financing without waiting 90 days.
FHA has temporarily waived the 90 day wait period, on certain transactions. These recently purchased homes may be sold and financed with FHA insurance.
· Private sellers and investors are now eligible to take advantage of this waiver.
· These transactions must be arms-length, with no identity of interest between the buyer and the seller or other parties participating in the sales transaction.
· In cases where the sales price is 20% or greater than the seller's acquisition, the lender must justify the increase in value with supporting documentation of renovation, repair and rehabilitation work.
o If no such work was performed the appraiser must provide an appropriate explanation of the increase in property value since the prior title transfer.
o The lender must order a property inspection and provide that report to the home buyer. Buyer's may be charged for the cost of this inspection.
Thinking about buying or selling property??? I can help anyone, anywhere!!!
For more information, go to www.GreenvilleRealEstateGirl.com.
"Begin with the end in mind"
Lindsay Saunders, Realtor, REO Certified Specialist
Keller Williams Greenville Central Partners
864-607-0479 Direct
Saunders@kw.com
www.GreenvilleRealEstateGirl.com
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