The news from FHA today is beyond HUGE! They have suspended their 90 day rule beginning 2/1/10. This means we can now sell properties to FHA buyers without having to season the title for 90 days.
Since 2006 FHA, with only a few exceptions, has refused to finance a deal for a buyer, where the seller was not on title for at least 90 days from the time the buyer opens escrow. So for practical purposes that really meant +/- 120 days of ownership till you could close with an FHA buyer.
This has made it tough for investors like us because, lets face it, first time home buyers are where it’s at and the majority of them get their mortgages from FHA.
That’s why I’ve been teaching folks to flip junkers to investors and then they would fix and sell to the FHA buyer after they’d owned it long enough.
Well the flood gates have been opened. We can now sell direct to FHA buyers too! Short sale deals, REO’s, private seller deals, you name it!
There are some provisions of course but this is really huge. REALLY HUGE!
If you read the Waiver you’ll see it says that the seller has to be on title at the time of close. Don’t think for a minute that this rules out same day closings where we provide 1 Day Dough. Oh no.
We deal with that every day already, and close deals left and right where the buyer’s lender wants to see the seller on title before they’ll fund. It’s no big deal. We can handle it!