I bought a home in September and completly rennovated it. It has been under contract with a realtor and we have a purchase agreement that we should close on the 13th. However, we the bank just informed us that the buyer only has 5% to put down, but they need 10%. So our new option is to go FHA, but I heard you cannot use FHA if the house was bought within 12 months. Is that true? Do I have any other options (raise my purchase price, but give them the extra 5%)?
There is amn “Investing Glossary” link in the left margin under “Investor Information”:
Seasoning - loan which has been in force for a period of time thus establishing the borrower’s payment history, loans are tyically deemed to be seasoned after either six months or one year.
I wish I had a link to source, but I heard from a local lender that currently there is no FHA seasoning requirements. Ask your local lender for more info