Posted by DaniB on September 22, 2004 at 19:28:04:
Thanks, Jason and all the rest of you. We’ve contacted the realtor
to let her know we need to have the buyer go conventional. It
should be easy to get financing. The buyer’s realtor is also a
mortgage lender so it shouldn’t be any problem.
FHA Seasoning for below market property - Posted by DaniB
Posted by DaniB on September 22, 2004 at 10:45:17:
We purchased a property from a bank at the end of August, got a great deal and put it on the market immediately. We have very little into the property and don’t intend to rehab but sell to a handyman or another investor. We are asking $169,900, comps are $210,000 and repairs to make it really nice would be between $7 - 10K.
We have an offer, but the individual would like to finance FHA. I know there will be a seasoning issue, however, will it be the same if the buyer is purchasing and getting so much equity? Should we request he purchase using a conventional program?
Re: FHA Seasoning for below market property - Posted by jasonrei
Posted by jasonrei on September 22, 2004 at 15:56:31:
It’s 90 days minimum to sell FHA. I sell FHA all the time. I provide lender with my purchase HUD-1, and a list of improvements. My deals are like $35k purchase + $20k documented repairs for a $70k retail. All my FHA sales this year were after the 90-day mark.
I tried to sell a house earlier this year via FHA. I bought at end of January. House was in good shape. Had my buyer lined up prior to purchase. In mid-February it kicked out because of seasoning. My buyer went conventional and I closed in early or mid March.
I’d insist on conventional financing if I were you.
Re: FHA Seasoning for below market property - Posted by Joe
Posted by Joe on September 22, 2004 at 12:32:35:
Personally, I would request that the buyer use conventional funding. I would put him in contact with a good mortgage broker if desired. There are conventional programs available that are as good or better than FHA, in that the DP can be small, and the seller can contibute money towards the buyers closing costs and DP.
From my experience, FHA will take a long hard look at a property with no seasoning, and no improvements.
Just my opinion, though.
Re: FHA Seasoning for below market property - Posted by DaniB
Posted by DaniB on September 22, 2004 at 10:56:11:
Actually we have it listed through a realtor both ways. $169,900
“as is” or $189,900 fixed. We plan on fixing it if we don’t flip it
quickly. But we need to add more to the price for the additional
holding cost, etc.
It shows really well, is not your usual junker. Can be lived in
immediately and even includes all appliances. It’s a good deal no
matter how you buy it.
Just curious but… - Posted by trapper
Posted by trapper on September 22, 2004 at 10:51:30:
Why not put 10k into it and sell it retail?