FHA, Investors and Seasoning Issues
by Tina Merritt
As some of you may know, selling a property you have owned for less than 90 days to an FHA buyer has been virtually impossible for the past few years due to HUD seasoning guidelines.
On January 15, 2010 David Stevens, the Assistant Secretary for Housing, waived the existing guidelines regarding the seasoning issues until February 1, 2011.
To read the amended guidelines, here is the link:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
Unfortunately, some lenders are not following these new guidelines and are still holding to the old with regards to FHA loan approvals.
I recommend the following if you are in a situation where you are trying to sell a home you have owned for less than 90 days and find yourself with an offer from an FHA buyer: inform the lender of the date you purchased the property and offer a list of improvements you have made. Then, send a copy of the new guidelines and request a statement from the lender's underwriting department that they will honor the amended guidelines issued by HUD.
Tina Merritt is an 11 year veteran Real Estate Agent and Trainer based out of Virginia Beach, Virginia. She holds a degree in economics from Virginia Tech and post-baccalaureate from Virginia Commonwealth in real estate and land development. As an avid social networker and internet marketer, Tina helps real estate agents, loan officers and affiliated industries embrace technology. As a real estate agent, Tina primarily deals with marketing and selling properties deemed "hard to sell" and also works with real estate investors helping them build and/or liquidate their portfolios for maximum profit.
Posted: 2010-03-25 19:38:00