Fix and flip properties 0 to 90 days and back to ZERO
If you haven’t heard the FHA has removed the 90 days seasoning rule.
This is part of the press release.
WASHINGTON – In an effort to stabilize home values and improve conditions in communities
where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a
temporary policy that will expand access to FHA mortgage insurance and allow for
the quick resale of foreclosed properties. The announcement is part of the Obama
administration commitment to addressing foreclosure. Just yesterday, Secretary
Donovan announced $2 billion in Neighborhood Stabilization Program grants to local
communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.
Why is this good for the Real Estate investor? Plan and simple is save on holding costs and opens a
major loan avenue. If you have to hold a $200k property for 3 months with hard money
that would be $9000 that could be going into your pocket!
Almost all will qualify but there are some restrictions.
- All transactions must be arms-length, with no identity of interest between the
buyer and seller or other parties participating in the sales transaction.
- 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.
This is temporary waiver that will not be around forever.
I would suggest, to start buying up properties ASAP and start reaping the
reward that the government has to offer.
To read more on this you can go directly to the Governments website here http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf