what about 3 month rule for FHA?

campbellgroup · February 9, 2006, 8:57am

How are the rehabers getting around the 3 month law for FHA?

LoriK · February 10, 2006, 6:29pm

By selling to non FHA buyers.

anothersteve · February 20, 2006, 3:42am

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?

Thanks

mcwagner · February 23, 2006, 7:04pm

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