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FHA OK’S Finance Of Qualified Flips
By C. J. Coury
In an effort to speed up the resale of foreclosed properties the FHA has announced that it will begin to insure loans on properties that were re-sold within 90-days of purchase by the seller.
This change will allow lenders to offer FHA financing to buyers who are attempting to purchase these quick re-sales between 2/1/10 and 1/31/11. While this will help a great number of buyers there are certain restrictions that will apply.
The primary intent of this easing is to allow investors to purchase, rehab and resell these properties to FHA qualified buyers as soon as possible. There are several restrictions placed on lenders including the following:
• Transactions must be arms-length
• Sale price should not exceed 120% of sellers acquisition cost
• Forward mortgage products only
Further details and conditions of this temporary policy are available on HUD’s website at http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf [2].
C. J. Coury is a Senior Vice President with Bank of America and oversees their residential mortgage division serving Sarasota, Manatee and Charlotte Counties. Prior to joining Bank of America in 1995, C. J. was President of Mortgage Brokers of America in Birmingham, MI for 7 years. He has been an active mortgage finance professional since 1983. C. J. may be reached at (941) 952-2888 or by email at charles.j.coury@bankofamerica.com [3].
Copyright © 2010 REAL Magazine
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