How are the rehabers getting around the 3 month law for FHA?
By selling to non FHA buyers.
First time poster looking at rehabs.
I understand the 3 month rule. What about holding the house more than 3 months? Seems like cutting out the FHA buyers is a huge loss. The area I’m looking 50-80k, seems like most if not all buyers would be FHA. I’ll probably be doing all cash, so sitting on it for a few months could work. What are the restrictions after 3 months?
no “restrictions” but you may have to provide the buyer’s underwriter with documentation of improvements you made to justify any increase in value. keep all your receipts! and get the buyer’s permission to take directly with their lender. helps if you have an “as repaired” appraisal done before you purchased.
Mark Wagner, CPA