Dept. of Housing and Urban Development Waives 90 Day Ownership Requirement

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

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.