FHA 90 Day Property Flip Waiver
FHA’s property flip waiver, which allows buyers to purchase a property being flipped in less than 90 days, took effect February 2010 and was to expire December 31, 2011. In December, however, FHA announced an extension to the waiver through December 31, 2013.
To ensure FHA borrowers are protected from inflated prices, the waiver has specific requirements which must be met:
-All transactions must be arms-length, with no identity interest between the buyer and seller or other parties participating in the sales transaction
-If the sales price of the property is 20 percent or more above the seller’s acquisition cost, the lender must meet 2 specific conditions
- Justify the increase in value by obtaining a second appraisal (the buyer can not pay for the second appraisal; this is a seller or lender paid cost. If it’s seller paid, we require the appraisal to be paid at the time the appraisal is ordered. The cost for the second appraisal is $400 - $500) and
- Obtain and review the property inspection (underwriting may call for repairs from the property inspection if they pose a health and safety risk or are required to be repaired to comply with FHA guidelines)
- Property inspection to be ordered and obtained by lender
-Seller must hold title to property
-No previous flipping activity exists for the subject property within the preceding 12 months n
-Property must have been marketed openly and fairly via MLS, auction, for sale by owner or developer
Home Buyer Tips
- 2 Myths That May Be Holding You Back From Buying
- 5 Reasons Home Ownership is a Good Financial Investment
- Do’s and Don’ts During The Loan Process
- FHA 90 Day Property Flip Waiver
- Getting a Mortgage: Why So Much Paperwork?
- How to know if it’s a condo?
- Look for a Luxury Home? Now’s The Time To Act!
- Ready To Make An Offer? 4 Tips For Success
- The Perfect Home Loan Application
- What You Need To Know About VA Loans
- Condo Loans - Low Down Payment
- How We Safe Guard Your Information
- Mortgage Insurance
- Niche - Unique Mortgages
- Path 2 Buy
- Rent vs. Buy
- Rising Rent - No Problem
- Student Loan Debt
- The Mortgage Process
- USDA-Wide Open Spaces
Homeowner Tips
Tax Information
Loan Programs
- FHA “Back-To-Work: Extenuating Circumstances” Program
- FHA 203k Streamline Rehab Loan
- HomeStyle Renovation
- HUD-184 Native American Program
- Jumbo Loans
- Veterans Assistance Loan Benefits
- Reverse Mortgage
- 3 Reasons Why First-Time Home Buyers Love FHA
- FHA - Home Ownership Opportunities
- FasTrac Approval Process
- Home Ready Program
- Jumbo Plus Loans
- Loan Programs - Pros & Cons
Closing Information
Financing Information
- How Low Interest Rates Increase Your Purchasing Power
- The Power of Pre-Approval for Agents
- Where Are Interest Rates Headed?
- Why Pre-Approval Should Be Your First Step
- Delayed Financing Options
- Discount Points vs Premium Pricing
- Duplex Financing Options
- FICO Scores
- Flipped Property Finance Options
- Jumbo - Credit Challenged
- No Lender Fees
- Refinancing
Specialty Programs
- Union Advantage
- FHA - Benefits
- FHA - Credit Requirements
- FHA - Limited Savings
- FHA - Refinance
- Family Opportunity Program
- Fannie Mae - 97% LTV
- HomeScout: Your Unfair Advantage
- Jumbo - Medical Loan Program
- Luxury Home - 2 Million Max
- NHF Platinum - Down Payment Assistance
- Non-Resident Alien Home Loan