Effective February 1, 2010 the 90 day ownership requirement for an
FHA Insured transaction is being waived.
For additional information click the link below
DUH! Restrict the investors in a buyers market and guess what, they don’t buy.
Good move on HUD’s part!
This is only a one year waiver, and, lenders are not required to apply the waiver. Some lenders who originate FHA loans will continue to use a 90 day title seasoning requirement to mitigate loan risk.
Investors hoping to flip a property within 90 days will have to shop lenders to find those that can fund a deal for their buyer.
I agree John - Good Move by FHA. FNMA and Freddie Mac should consider it also to help move properties is a depressed market. Many lenders are sticking with their 90 day seasoning requirement, but some are not and very short term deals to FHA buyers are posssible. :bobble
Yeah, hopefully most lenders will be on board with shorter seasoning requirements. I wonder if they will extend it in a year from now… I guess it depends on how housing is looking.
Which Lenders are waiving the 90 Days? Herbster
Herbster,
I am about to fund several A-B deals as part of a team. I cannot give exact details yet, but will be posting probably in a few weeks. Happy to speak if you wish to contact me.