Yes, I have a fundamental and rudimentary understanding of the English language. Just because one doesn’t take the time to understand how and why a Federal agency works doesn’t mean that that their rules/ codes are ‘esoteric’.
Keith
[/quote]
Just because one doesn’t take the time to understand how and why a Federal agency works doesn’t mean that that their rules/ codes are ‘esoteric’.
[/quote]
No one said it did. I said if few people read and understand those rules, then that makes them esoteric.
If most people do understand them then they aren’t esoteric. Who cares? Is this really pertinent to the subject or are you just trying to stir up an argument?
Rat,
FHA suspended the anti-flipping rule for normal investors as well however I have seen that most lenders have put an overlay in place that will not allow the transaction to proceed if the new sales price is over 20% higher than the previous purchase price.
No one said it did. I said if few people read and understand those rules, then that makes them esoteric. If most people do understand them then they aren't esoteric. Who cares? Is this really pertinent to the subject or are you just trying to stir up an argument?
I think the point that we have all been trying to make is the fact that you are advocating the violation or circumvention of the codes. :flush
Doing transactional loans where the C party (of an ABC back to back transaction) will have an FHA backed loan absolutely does have additional complexity. Unless the first leg (AB) of the transaction is executed within a trust, even if the 90 day rule does not apply (which depends on the specific circumstances of the transaction and the laws applicable to it), you generally still have a title seasoning issue which is common among most C lenders. Specifically, C lenders would like to see the investor (let’s call them party B) on title before funding the C party loan. For transactional lenders, this is a big risk to take and the smart ones avoid doing so. Some of these issues can be addressed using a trust, but there is additional complexity around that which vary from state to state. :cool