90 Day Real Estate Seasoning Waived Effective February 1, 2010, the FHA is
waiving its 90 day seasoning requirement for the sale of real estate.
(Effective for one year) What does this mean? In short, this waiver allows
real estate investors who purchase a REO, foreclosure, or realty by some
other manner to sell the property within 90 days to a qualified FHA buyer.
Originally the 90 seasoning requirement was implemented by the FHA as "anti
flip" measure designed to prevent perceived abuses of the real estate market
resulting in artificially inflated home values. Unfortunately, the 90 day
rule shut many home buyers out of the market who can not afford conventional
loans due to the current economic climate and must obtain financing under
FHA guidelines with a low 3.5% down payment requirement. Now more homes will
be available to these buyers and rehabbers can begin moving their
inventories. [image: Flip]
The waiver is limited to those sales meeting the following general
conditions:
All transactions must be arms-length, with no identity of interest between
the buyer and seller or other parties participating in the sales
transaction.
In cases in which the sales price of the property is 20 percent or more
above the seller's acquisition cost, the waiver will only apply if the
lender meets specific conditions.
The waiver is limited to forward mortgages, and does not apply to the Home
Equity Conversion Mortgage (HECM) for purchase program.
David Colbeth Your Community REALTOR� 253-778-6423 phone/text /
206-264-5217 efax
CDPE - Certified Distressed Property Expert - Oh, don't forget... I'm never
too busy for your referrals!
Please visit my websites: www.DavidColbeth.com ~
www.YourCommunityRealtor.com
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