FHA requires seasoning? - Posted by IB (NJ)

Posted by IB (NJ) on March 27, 2001 at 12:45:51:

FHA loans do not require seasoning. I knew it was BS. This guy (he’actually not the buyer, just a “representative”) has been BS’ing us (my partner and I) from day one. Thanks JPiper.

FHA requires seasoning? - Posted by IB (NJ)

Posted by IB (NJ) on March 26, 2001 at 12:25:41:

Is this a new development in FHA loans? I think a buyer is stalling on the closing and using the fact that my ownership of a sfh is not seasoned as an excuse. He’s getting an FHA loan which was supposedly out of underwriting a week ago. The title work is back but all of a sudden, he claims that there’s a slight holdup due to seasoning. The closing’s been pushed back to Wednesday to give his “connection” time to fix the seasoning problem. I think he’s BS’ing. Who do I call to verify?

No, but… - Posted by Ron (MD)

Posted by Ron (MD) on March 27, 2001 at 18:01:09:


Although FHA doesn’t prohibit unseasoned sales, they have slowed things down.

The process (at least for Baltimore City properties) is:

– as soon as a lender requests an FHA case number (which is relatively early in the loan process), FHA checks the public record to see how long the seller has been on title.

– If the seller has been on title for less than one year, FHA sends a stern letter to the lender explaining when the property last transferred and the price (which is enough to make some lenders nervous)

– FHA also forewarns that once the bank gives final approval to the loan, FHA will carefully scrutinize the appraisal and the underwriting file…reserving the right to order a new appraisal. They explain that this will take “two weeks or more”.

The letters I’ve seen have indicated that these procedures apply to specific areas of Baltimore that have experienced a problem with bad loans.

So, it could be that FHA is, in fact, holding up the process. The lender may be willing to share a copy of the letter with you, if there is one.

Ron Guy

Re: FHA requires seasoning? - Posted by JPiper

Posted by JPiper on March 26, 2001 at 22:59:41:

As far as I know FHa has no seasoning requirements. But, you could call HUD and ask if there is a recent title seasoning rule. This is an area of flux…so things may have changed since the last I heard. Let me know what you find out. When you stop to think about it…how would you “fix” a seasoning problem?