Get around FHA Title Seasoning

I am in MN and pretty much every buyer out there is using FHA financing right now. What is a legal way to get around the Title Seasoning Issue that FHA seams to have. I have a couple properties that I have approved and have end buyers for but they are all using FHA financing and the FHA wont fund them because of the seasoning issue.

Any help please??

I have not figured this one out yet. I usually put the end buyer in the property as a tenant paying me rent until the title seasoning period is over. Then they purchase.

So just do like a short term c/d or rent to own? Or do you just have them pay rent that covers your mortgage?

So you must be purchasing the home outright then reselling? Do you purchase cash to keep closing costs down? If seasoning is 3 months with FHA then if you could build a nest of 500K then you could finance 2 short term Lease options or c/d’s at a time with that…depending on price of course.

I am trying to fiigure out the best way. I have a guy that has that kind of cash and I am going to take out for dinner to see if he would be interested.

Any suggestions?

The homes I was talking about are ones I purchase and flip in 90-days to an FHA buyer. On those particular homes I just write up a short term lease with a non-refundable deposit stating that they will close on or before 115 days.

If you are talking lease options, that is a different story. Lenders will usually require 1-year proof of payments from the tenant/buyer before they will consider them for financing. That is why most of my lease options are 1 or 2 year lease options and I run all the payments through a long term escrow company.

If you are thinking of doing lease options you should not have to get financing. Keep the existing (seller) loans in place and take control of the property. Put a tenant/buyer in the property and have them pay a little over what the mortgage is, that way you create a little cash flow. Do this over and over and over again, and that little bit of cash flow becomes a substantial amount of money every month.