Anyone use the waived FHA 90 day rule yet? Posted by: Nate-WI
Posted on : 3/12/2010 11:54:41 AM Group,
Have you sold to any FHA buyers before the 90 days yet? Any roadblocks? Any troubles during the closing process?
It seems that I can talk to 10 different brokers, realtors, investors, etc. and all 10 have a different answer but none have tried this yet.
Any input is appreciated,
Nate-WI |
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Re:Anyone use the waived FHA 90 day rule yet? Posted by: J Scott (ATL) Real Estate Investor
Posted on : 3/13/2010 1:00:35 PM Nate -
I'm in the process of my first one now...here are some details/thoughts:
- The property was purchased in mid-January for $70K, I put in $20K in rehab, and am selling for $145K.
- Property went under contract on February 26 and is scheduled to close the week of March 22.
- The buyer's broker couldn't find a large national bank to underwrite the loan within 90 days (consistent with what other broker's have told me), but he called around to some regional banks and found one that would do the loan.
- The buyer has excellent credit, though I don't know if that was a major consideration to the lender or not.
- The property will require two appraisals.
If I can answer anything specific, let me know. I'm hoping to stick with this broker for future transactions, though he hasn't yet given me any specific criteria necessary to get future pre-90 day FHA loans underwriten.
J Scott (1-2-3 Flip.com)
http://www.123flip.com |
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Re:Anyone use the waived FHA 90 day rule yet? Posted by: Androstein Mortgage Banker
Posted on : 3/14/2010 5:10:45 AM That seems correct with the two appraisals Nate due to the value increase. Let me know if you run into any problems, as I will have some solutions for you. Wright |
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Re:Anyone use the waived FHA 90 day rule yet? Posted by: Eileen-WI
Posted on : 3/14/2010 2:50:50 PM
Hey Nate,
I am also attempting to close with an FHA buyer prior to 90 days. We closed with HUD in late February and closing with our buyer is March 31st. I spoke to the buyers lender and he did not foresee any problems. I asked about profiting more than 20% and he said the buyers lender will allow 50%.
We also need 2 appraisals which were done late last week. We need to do a couple things and the appaiser will go out again. So far I haven't heard anything like the house will not appraise out but I'm kind of holding my breath until we have a successful close.
Once we close I will post with any problems, issues, suggestions, etc...
Eileen-WI Eileen-WI
www.flippingwisconsin.blogspot.com |
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Re:Anyone use the waived FHA 90 day rule yet? Posted by: Dustin [WI] Real Estate Investor
Posted on : 3/14/2010 4:19:12 PM Has anyone tried using a short term lease option (90 days) with the buyer to avoid the FHA 90 day seasoning?
The problem would be if you wanted the buyer to put down a small deposit (3%?) when that 3% from the buyer would have been used for the FHA loan. And I wouldn't think you could credit them that 3% back as part of the FHA loan as money itself would need seasoning in the buyers hands.
Dustin
http://www.StopForeclosureWI.com |
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Thanks folks Posted by: Nate-WI
Posted on : 3/15/2010 8:15:50 AM Thanks for responding folks. I'm like many of you. I just took an fha offer and I've had the house for 30 days. Good luck to all of you that are in the process,
Nate-WI |
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Re:Thanks folks Posted by: Russ L
Posted on : 3/15/2010 2:18:28 PM nate,
im in the process of doing one right now too. owned it about 75 days before getting under contract. we are being required to do 2 aprisials. but im testing the waters with the new rulling.
Blessings,
Russ L
Enjoy life, Encourage other's to do the same. |
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Re:Thanks folks Posted by: jingle5616 Investor
Posted on : 3/18/2010 9:05:03 AM I just closed one on Friday 3/12/10. We actually ended up with 3 appraisals. They sent out a "FHA field re-appraiser" to check to other two. Nice enough lady, but made us fix paint chips on the next door house side of the fence! Nice to know the government is encouraging trespassing now, good think it was an empty rental. They didn't require any financial documents from me other than the HUD-1 from my purchase of the house. I paid 3% in closing costs, much of it chewed up by appraisals. Craziness I tell you.....
Jingle |
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