Just received this from one of my mortgage contacts, thought I'd share:
The Federal Housing Administration's (FHA) Office of Single Family Housing announced that "the temporary waiver of FHA's regulation that prohibits the use of FHA financing to purchase single family properties that are being resold within 90 days of the previous acquisition, expires on December 31, 2014. The waiver applies to all sales contracts executed on or after February 1, 2010, until 11:59 PM, December 31, 2014. FHA deems a sales contract to be executed when all parties to the contract have signed the contract, and the contract is enforceable under the law of the state the property is located. Mortgages that are made on properties in which sales contracts have been executed after 11:59 PM, December 31, 2014, are not eligible for a waiver of the regulation prohibiting property flipping. FHA will not extend the waiver beyond December 31, 2014."
This means that the seller of a property will be required to be on title for 90 days before they can execute a sales contract for a property that the buyer will be using FHA financing for. In short for now if you do "Flips" plan on holding the property for 90 days before going to contract.
Thank you for taking the time to share that information. I appreciate it!
Thanks for sharing. Heard about this at auction today and had to verify.
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