Comments on: Text Of FHA’s Waiver of Property Flipping Prohibition http://realestate.bryanellis.com/66/fha-waiver-text/ Unbiased Real Estate Intelligence For Affluent Investors Wed, 18 Jan 2012 15:39:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dan Garcia http://realestate.bryanellis.com/66/fha-waiver-text/#comment-3056 Dan Garcia Mon, 17 Nov 2008 23:29:41 +0000 http://www.freerealestatetraining.com/?p=66#comment-3056 I can only explain what I have done in the past concerning this 90 period with investors flipping properties and buyers using FHA financing to purchase. The rule had always been 180 days utilizing a new FHA appraial, but between 90 and 180 days a transaction could close using two separate appraisals and only one had to be FHA. What underwriters look for on these flips is the date the contract is signed from the date the deed is filed. I have had contracts written within the 90 day period resulting in the underwriter requiring the sales contract to be re-dated after 90 days of transfer. This usually results in a closing somewhere around 100 days. Taking into account the need to make some repairs to the property, finding a buyer and loan processing it works out to be okay. If your looking to do 5 day flips than this is not nor ever will be your product of choice. I can only explain what I have done in the past concerning this 90 period with investors flipping properties and buyers using FHA financing to purchase. The rule had always been 180 days utilizing a new FHA appraial, but between 90 and 180 days a transaction could close using two separate appraisals and only one had to be FHA. What underwriters look for on these flips is the date the contract is signed from the date the deed is filed. I have had contracts written within the 90 day period resulting in the underwriter requiring the sales contract to be re-dated after 90 days of transfer. This usually results in a closing somewhere around 100 days. Taking into account the need to make some repairs to the property, finding a buyer and loan processing it works out to be okay. If your looking to do 5 day flips than this is not nor ever will be your product of choice.

]]> By: Chad http://realestate.bryanellis.com/66/fha-waiver-text/#comment-317 Chad Mon, 23 Jun 2008 18:55:56 +0000 http://www.freerealestatetraining.com/?p=66#comment-317 The enforcement of this rule boils down to the bank that is lending the money. I spoke to countrywide the other day and they said that even though the rule is waived, they still require 90 day seasoning on FHA loans. The guy called it a countrywide-ism. I am a mortgage broker in FL and I would recommend calling different banks/lenders to find one that doesn't still enforce this rule. That's what I'm trying to do. The enforcement of this rule boils down to the bank that is lending the money. I spoke to countrywide the other day and they said that even though the rule is waived, they still require 90 day seasoning on FHA loans. The guy called it a countrywide-ism. I am a mortgage broker in FL and I would recommend calling different banks/lenders to find one that doesn’t still enforce this rule. That’s what I’m trying to do.

]]> By: Jeffrey Smith http://realestate.bryanellis.com/66/fha-waiver-text/#comment-251 Jeffrey Smith Fri, 20 Jun 2008 20:46:40 +0000 http://www.freerealestatetraining.com/?p=66#comment-251 "or by vendors to whom they have transferred titles to properties for the purpose of effectuating sales of those properties." One could reasonably argue that transferring the property *TITLE* to a "vendor" for the purpose of effectuating a sale, is indeed selling the property to a fix-and-flip investor who will quickly repair and resell the property to an owner-occupant. “or by vendors to whom they have transferred titles to properties for the purpose of effectuating sales of those properties.”

One could reasonably argue that transferring the property *TITLE* to a “vendor” for the purpose of effectuating a sale, is indeed selling the property to a fix-and-flip investor who will quickly repair and resell the property to an owner-occupant.

]]> By: victor flores http://realestate.bryanellis.com/66/fha-waiver-text/#comment-211 victor flores Wed, 18 Jun 2008 07:02:56 +0000 http://www.freerealestatetraining.com/?p=66#comment-211 this applies only to mortgagees and their vendors. No mention of private investors !! <strong>There's been some talk about that. If there's a special definition applied to the word "vendor" in the original law which disallows private investors from being classified as a "vendor", you may be right. However, it appears there's a very good chance it DOES apply to private investors, as the word "vendor" simply means "seller" absent a specific definition to the contrary. -- <a href="http://www.BryanEllis.com" rel="nofollow">Bryan Ellis</a></strong> this applies only to mortgagees and their vendors. No mention of private investors !!

There’s been some talk about that. If there’s a special definition applied to the word “vendor” in the original law which disallows private investors from being classified as a “vendor”, you may be right. However, it appears there’s a very good chance it DOES apply to private investors, as the word “vendor” simply means “seller” absent a specific definition to the contrary. — Bryan Ellis

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