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Updated over 8 years ago on . Most recent reply

User Stats

309
Posts
115
Votes
Brett K.
  • Property Manager
  • Louisville, KY
115
Votes |
309
Posts

FHA 90 day seasoning for flips

Brett K.
  • Property Manager
  • Louisville, KY
Posted

The underwriter wants to make us rewrite the contract, get a second appraisal at my clients (seller) expense, and postpone the closing.  The underwriter states 90 days must pass from the time the deed was recorded, from when my client (investor) purchased the property, and the date the purchase contract was signed.  

According to FHA guidelines, on page 146 (per HUD Handbook 4000.1 dated 12/30/16) it states it is from the time of "acquisition". Due to about a 2 week delay from the date of the deed to the time it is recorded.

So I'm in a pissing match trying to get this thing to close without delay and avoid my seller having to pay another $400+ appraisal fee.

Have they issued a new guideline since Dec. 2016?  

In practice do they use the date of recording even though the guidelines state date of acquisition?   

Practical insight appreciated.  

Thanks,

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