FHA flip rule waived
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The past two weeks have been tremendous for short sale investors! First Wells Fargo has amended their guidelines and now FHA has suspended their flip rule regarding the 90 day seasoning. For those of you that aren’t familiar, a investor couldn’t buy a property and immediately sell the property without holding title to the property for 90 days. This is no longer the case as of February 2010. You can read the press release from HUD.gov here and an outlining article here
The gotcha which this however, is that the B-C contract cannot be executed until the A-B actually closes. So, you may be looking at holding the deal for 14-30 days depending on your preparation.
You now have no more excuses to make some money in 2010 
New lending changes for end buyers as of April
New Lending Policies Announced by FHA
If you were listening to the housing news last week, you probably heard a number of reports about lending changes that were announced by the Federal Housing Administration (FHA). While many of the news reports were confusing, the truth is pretty clear, and isn’t as bad as some people may have heard.
Overall the measures are intended to help the FHA better manage its risks and strengthen its capital reserves, while still providing home loans to the nation. The good news, as FHA Commissioner David Stevens stated recently, is that “by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery” and “remain the largest source of home purchase financing for underserved communities.”
What’s Changing?
If you or someone you know is considering an FHA loan, some of these changes may affect you. Here’s a clear, concise rundown of the major changes and what they mean:
1. Increased mortgage insurance. The mortgage insurance premium (referred to as private mortgage insurance by many people) will be increased from 1.75% to 2.25%. This change will add some cost to purchasing a home, but will not overburden consumers since the mortgage insurance is paid over the life of the loan, rather than upfront at closing.
2. New down payment and credit score requirements. According to the new policy, homebuyers who have a credit score of at least 580 may still be able to purchase a home with 3.5% down, but those with credit scores of less than 580 will be required to put down at least 10%. This change is designed to help the FHA balance its risk, while still providing affordable down payments for consumers with a history of good credit and responsibility.
3. Reduced seller concession. Basically, this change means that the person selling the home will now only be able to offer the homebuyer 3% to help defray closing costs, as opposed to 6% under the previous policy.
In addition to these changes, the new policies contain a series of new measures aimed at increasing lender enforcement.
These changes will become effective on April 5, 2010. The bottom line is that the changes will impact some homebuyers more than others. But in the end, the FHA is still committed to providing affordable home loans.
The past two weeks have been tremendous for short sale investors! First Wells Fargo has amended their guidelines and now FHA has suspended their flip rule regarding the 90 day seasoning. For those of you that aren’t familiar, a investor couldn’t buy a property and immediately sell the property without holding title to the property for 90 days. This is no longer the case as of February 2010. You can read the press release from HUD.gov here and an outlining article here
The gotcha which this however, is that the B-C contract cannot be executed until the A-B actually closes. So, you may be looking at holding the deal for 14-30 days depending on your preparation.
You now have no more excuses to make some money in 2010
New lending changes for end buyers as of April
New Lending Policies Announced by FHA
If you were listening to the housing news last week, you probably heard a number of reports about lending changes that were announced by the Federal Housing Administration (FHA). While many of the news reports were confusing, the truth is pretty clear, and isn’t as bad as some people may have heard.
Overall the measures are intended to help the FHA better manage its risks and strengthen its capital reserves, while still providing home loans to the nation. The good news, as FHA Commissioner David Stevens stated recently, is that “by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery” and “remain the largest source of home purchase financing for underserved communities.”
What’s Changing?
If you or someone you know is considering an FHA loan, some of these changes may affect you. Here’s a clear, concise rundown of the major changes and what they mean:
1. Increased mortgage insurance. The mortgage insurance premium (referred to as private mortgage insurance by many people) will be increased from 1.75% to 2.25%. This change will add some cost to purchasing a home, but will not overburden consumers since the mortgage insurance is paid over the life of the loan, rather than upfront at closing.
2. New down payment and credit score requirements. According to the new policy, homebuyers who have a credit score of at least 580 may still be able to purchase a home with 3.5% down, but those with credit scores of less than 580 will be required to put down at least 10%. This change is designed to help the FHA balance its risk, while still providing affordable down payments for consumers with a history of good credit and responsibility.
3. Reduced seller concession. Basically, this change means that the person selling the home will now only be able to offer the homebuyer 3% to help defray closing costs, as opposed to 6% under the previous policy.
In addition to these changes, the new policies contain a series of new measures aimed at increasing lender enforcement.
These changes will become effective on April 5, 2010. The bottom line is that the changes will impact some homebuyers more than others. But in the end, the FHA is still committed to providing affordable home loans.
Hi,
reibeast.com – da best. Keep it going!
Thank you
It’s about time that the government actually got out of the way of business people and let capitalism function as designed. Perhaps this is a sign of things to come… Let’s all cross our fingers!