New Seasoning guidelines for FHA & Fannie/Freddie??

New Seasoning guidelines for FHA & Fannie/Freddie??

I was told yesterday (6/18/09) that FHA will now require a property to be seasoned for at least 90 days after recording of deed before they will finance. If deed takes 2 months, that's 5 months before reselling. Also told that Fannie/Freddie property must be seasoned at least 6 months.

I'm meeting w/ my mortgage guy this morning, but wanted to see if anyone else could verify this info. It would kill a flip from the way I see it.


Robbie Inks
Eternal Equity Investments


Joshua 1: 8-9
"Study this Book of Instruction continually. Meditate on it day and night so you will be sure to obey everything written in it. Only then will you prosper and succeed in all you do. This is my command—be strong and courageous! Do not be afraid or discouraged. For the Lord your God is with you wherever you go.”

FHA Suspends 90-day Flip Rule

Thought this might be useful info for everyone.

FHA Suspends 90-day Flip Rule

News broke today that FHA will be temporarily waiving a rule that has been impeding bank resale of foreclosed properties.

The so-called "90-day rule" was implemented to stop property-flipping schemes that utilized multiple investors to rapidly increase the value of a home, while stripping that value out through larger and larger mortgages. This scheme hurt many individual homeowners who were often left holding the bag on loans, although in many cases the final purchaser was often complicit in the fraud, receiving a portion of the proceeds as compensation for ruined credit.

A side effect of this rule has been a substantial delay in the ability of foreclosing lenders to resell to borrowers wishing to use FHA-insured financing. Because of this rule, a lender must have taken title a minimum of 90-days before contracting to sell to a new homeowner. With the temporary waiver, that delay is now eliminated.

Of course, not all bank foreclosed properties are eligible for FHA financing, not only due to the now waived 90-day rule, but more frequently due to the condition of those properites, and the banks unwillingness to make required repairs. Of specific note is the standard FHA requirement that all insured homes be owner occupied. All the same, this change will have significant and immediate impact.

Of important note is that this rule change does not apply to all sellers. According to one article, the waiver will only be allowed for banks, and other property disposition companies acting on their behalf. Investors who purchase properties, repair them, and then resell ("Fix-and-Flip"), would not be eligible for this exemption.

FHA limitation

Hi Drew,

I have a quick question for you about FHA. Can a person who has co-signed on another mortgage apply for FHA on his/her first property?

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