The FHA flipping ruling? - Posted by Charity

Posted by js-Indianapolis on September 12, 2003 at 01:57:02:

Lots of info to be had here.

http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2003/03-10778.htm

This is the actual ruling, and it’s a little dry. I’ll try to hit the high points. somebody smack me if I get something wrong.

FHA-
-No sales for first 90 days.
-between 91 and 365 days you need a second appraisal
-after a year you can sell away
-Although not covered, multiple debates online have concluded that the transfer to trust will start the 90 day clock ticking. Do a search.
-Can’t assign contracts (at least not if they know about it)

Now, conventional lenders are free to make up their own silly rules. The good thing is that some still break their own rules, whereas HUD has written inot their ruling there will be NO exceptions. Just keep in mind that FHA loans need to be under I think around $160K, so anything above you’ll be able to deal with NON FHA buyers. Below, you might have to deal with the mental midgets who figured that if they made people hold property for 90 days, there will be no fraud.

The real answer here is to find a good…no, GRREAT mortgage broker to work WITH you.

The FHA flipping ruling? - Posted by Charity

Posted by Charity on September 11, 2003 at 22:32:28:

I just read the information on the FHA ruling and want to make sure that I understand it. Is it saying that we cannot sell the property using FHA financing for at least 90 days after purchase? Would this apply to Sub2’s taken in trust also since title did not pass?

Also, is it still ok to sell immediately using Conventional loans?

Charity