Dept. of Housing and Urban Development Waives 90 Day Ownership Requirement

[Bluemoon06]

Effective February 1, 2010 the 90 day ownership requirement for an
FHA Insured transaction is being waived.

For additional information click the link below


http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

[JohnSchroeder]

DUH!  Restrict the investors in a buyers market and guess what, they don't buy.

Good move on HUD's part!

[Dave T]

This is only a one year waiver, and, lenders are not required to apply the waiver.  Some lenders who originate FHA loans will continue to use a 90 day title seasoning requirement to mitigate loan risk.

Investors hoping to flip a property within 90 days will have to shop lenders to find those that can fund a deal for their buyer.

[Ted Akers]

I agree John - Good Move by FHA.  FNMA and Freddie Mac should consider it also to help move properties is a depressed market.  Many lenders are sticking with their 90 day seasoning requirement, but some are not and very short term deals to FHA buyers are posssible.   

[ShortSaleArtisan]

Yeah, hopefully most lenders will be on board with shorter seasoning requirements. I wonder if they will extend it in a year from now... I guess it depends on how housing is looking.

[herbster]

Which Lenders are waiving the 90 Days? Herbster

[Ted Akers]

Herbster,
I am about to fund several A-B deals as part of a team.  I cannot give exact details yet, but will be posting probably in a few weeks.  Happy to speak if you wish to contact me.