Posted by Ron (MD) on August 02, 2003 at 06:36:10:
Henry,
I’m not an expert on this…just know the main points. Here’s a link where you can learn more, but I’m not sure you will find the answer to your very specific question.
http://www.hud.gov/news/release.cfm?content=pr03-055.cfm
Ron Guy
FHA Loan question - Posted by fred
Posted by fred on August 01, 2003 at 12:38:44:
I just closed on a condo on 6/30/03. I got it for $115K. We found a buyer who will purchase it at $174K. He?s applying for a FHA loan.
Will the seasoning requirements I hear about kill this deal?
Is there anyway around this stumbling block?
BTW 2 other units in the same building closed at $167k & $163k in the past 3 weeks. Same floor plans, not as good shape.
Thanks
Re: FHA Loan question - Posted by Ron (MD)
Posted by Ron (MD) on August 01, 2003 at 16:18:30:
Fred,
FHA will not approve the loan unless there are at least 91 days between the dated you settled (when you bought it) and the date of the contract with your buyer.
Your buyer can start the loan process, just don’t sign the contract prior to that 91st day.
Ron Guy
Re: FHA Loan question - Posted by jasonrei
Posted by jasonrei on August 01, 2003 at 15:29:55:
I would think you’ll need to wait the 90 days to close.
I have a flip deal right now going FHA. I bought it April 30. Supposed to close August 22. That’s 110+ days of seasoning. I called the mortgage broker to ask her what FHA might require; she hadn’t even heard of the flip thing. I am now waiting on the appraisal to come back. I may need to pay for a second appraisal (as per FHA guidelines on flips). The buyer is not allowed to pay for the 2nd appraisal.
I bought the house for about $34700, I think. I’m selling it for $69900. FHA doesn’t want to see a 100+% markup, but my understanding is they will do it though they may ask the lender to provide addt’l documentation to justify the markup. I have a list of repairs performed, photos, and cancelled checks to my contractor.
Fred, FHA guidelines are pretty clear. They don’t want deals with less than 90 days seasoning. I don’t know if that stuff is thoroughly enforced, though.
Re: FHA Loan question - Posted by beck4353
Posted by beck4353 on August 01, 2003 at 15:14:07:
I believe that you will have to hold it for 91 days or else FHA will consider it illegal flipping.
I might be wrong…
Just did one… - Posted by ken in sc
Posted by ken in sc on August 01, 2003 at 15:08:46:
Bought a house for 61K and rehabbed and sold for 110K. Took four months. When the seasoning issue came up, I was required to list the repairs I had done, and a second appraisal was done to assure the value was there. No problem.
Ken
Re: FHA Loan question - Posted by henry IL
Posted by henry IL on August 01, 2003 at 23:46:41:
What if the case # is assigned before the 90 days but the contract and appraisal are after? thx