Great News for Investors
Effective February 1, you will NOT have to wait 90 days to resell a property.
This update from FHA was released on Friday January 15th, 2010, as an excerpt from the CFR (Code of Federal Regulations) without a corresponding Mortgagee Letter and contains information about FHA's policies regarding the waiver of the 90-day seasoning required for sellers.
Here are the 6 things you need to know about these changes:
1. Waiver takes effect February 1st, 2010 for a period of one year unless extended.
2. Investors are now exempt from the 90-day seasoning rule.
3. All transactions must me arms-length.
4. No identity of interest can exist between buyer and seller.
5. If sale price is 20% or more of the seller's acquisition cost, the lender must:
a. provide supporting documentation and/or a second appraisal and
b. order an inspection of the property and provide it to the buyer.
6. The waiver is limited to forward mortgages only.
