Flipping and FHA - Posted by Tameka

Posted by qstaff on August 13, 2003 at 23:55:52:

FHA is very strict about 90 days and there are historical reasons having to do with corruption that they have these rules. You could send your buyers to a mortgage broker, but frankly they have no reason to go. FHA is a headache for you, but no doubt offers them the lowest interest with the least downpayment and is the most forgiving in terms of whatever may ail their credit. Have they sent over their FHA appraiser yet? At any rate, if you are under contract with these folks for any length of time you have no choice but to wait it out. You could rent them the place until it closes and yes you could try and cajole them into another type of loan but anybody who has a chance to get an FHA, gets an FHA.

Flipping and FHA - Posted by Tameka

Posted by Tameka on August 13, 2003 at 18:46:42:

My husband and I are new to investments. We recently acquired a foreclosure and put it on the market. We found a buyer however, we just received notice from FHA that they will not allow the buyer to purchase the house because we have not owned the property for very long. We have to wait 90 days before they will permit the purchase using an FHA loan. Has anyone else had this problem and if so how do you work around it. We don’t want to have to wait 90 days before we can sell a property. Thanks.

Re: Flipping and FHA - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on August 16, 2003 at 04:28:20:

Get a solid earnest money from the buyer who requires FHA, get them to release any contingencies, put the date of closing for the 91st day. Plenty of time for their lender to have it all sorted out and you have the EM with a P&S locking them into the deal; with you retaining the EM if they don’t close.

If they are serious, and need FHA, then you need to let them know you are serious too and will let them have the house, but they need to be committed to.

Re: Flipping and FHA - Posted by ken in sc

Posted by ken in sc on August 14, 2003 at 07:20:12:

No there is nothing to be done about this rule. Market your house now. Do not accept contracts that involve FHA financing within the first 90 days as they will not work. But you may get a buyer in the first 90 days who can get another type financing. If you have a buyer who requires FHA, tell them you will call them when 90 days is up.


Flipping FHA!!! - Posted by Jim FL

Posted by Jim FL on August 13, 2003 at 19:41:00:

Simple, send your buyers to another lender.
Make some calls, get ahold of a mortgage broker who has programs that do not have title seasoning.

They are out there.

Take care,
Jim FL

Re: Flipping FHA!!! - Posted by Anna

Posted by Anna on August 13, 2003 at 20:42:57:

Jim FL,

What are the genearal rules on title seasoning? Or are there GENERAL rules? I would imagine they very from state to state but I may be assuming wrong .