Title Seasoning

2 Replies

Does title seasoning start once a purchase contract or option has been recorded?

Here's what the FHA guidlines say:

(b) Time restrictions on re-sales- (1) Gerenal. The eligibility of a property for a mortgage insured by FHA IS DEPENDENT ON THE TIME THAT HAS ELAPSED BETWEEN THE DATE THE SELLER AQUIRED THE PROPERTY (BASED UPON THE DATE OF SETTLMENT) AND THE DATE OF EXCECUTION OF THE SALES CONTRAT THAT WILL RESULT IN THE FHA MORTGAGE INSURANCE (THE RESALE DATE.)

I've heard some people will say that the seasoning can occure once you've recorded an option but don't count on it. Underwriters are being completely inflexibley. Just assume the seasoning starts once your name is put on the title.

Alex,

I did a blog on this subject, sort of. Some of the comments are applicable to what you're asking.

http://www.biggerpockets.com/blogs/296/blog_posts/1561-actual-hud-guidelines-for-flips

Justin Pierce

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