GOOD NEWS from HUD FINALLY!
HUD just signed a waiver last January 18 to temporarily lift the 90 day seller seasoning requirement beginning February 1st. This will now make more rehabilitated foreclosures eligible for FHA financing.
How does this affect business? Simple, more buyers will now qualify for financing and those who rehab homes will now have more incentive to buy.
HUD Takes Action to Speed Resale of Foreclosed Properties to New Owners!
Great news for buyers, sellers & community values isn't it?
But are you aware of its specific conditions and other details?
Do you understand its nuances and how it will affect you?
Reading through the HUD's 5-pager Waiver Guidelines is definitely a MUST for us INVESTORS!
And to give you better understanding, I’ve found a video that lays out the details in plain English... (thanks to JP of REITips.com).. Check this out!
FHA Property Flipping Waiver: An Executive Summary of "Must Knows"
You can find significant stuff you absolutely need to start making money from this update and not get bitten by it. Knowledge is Power!
First time home buyers, this is your LUCKY YEAR!
HUD just announced that it is removing the 90-day flipping rule which allows homes to resell at a faster pace, assisting with stabilizing real estate prices and rejuvenating neighborhoods that have been hit hard from the collapse of the housing market.
This move will allow the Marketplace to help itself! Now, you can purchase a home and get financing within the first 90 days. This will help those investors out that buy a home, fix up, then want to resell it!
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner.
HUD also put some temporary guidelines into place in order to protect FHA borrowers from being targeted by sellers who inflate the prices of their properties in order to make a quick sale.
In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
To read this press release in its entirety, please visit:
http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-011
