FHA Purchase: After 90 Days But Before 180 Days
Posted by Kevin Kueneke | Visited 783 times, 1 so far today | Leave A Comment »
We have discussed FHA’s 90-day “anti-flip” policy a lot these days. Basically, a buyer will be unable to obtain FHA insured financing if the subject property has been owned by the seller for less than 90 days, with some exceptions.
But did you know that FHA is still concerned from day 91 to day 180? If the new purchase price is 100% or more than the price paid by the seller and the seller purchased the property within the past 91 to 180 days, the lender will be required to obtain a second appraisal by another appraiser.
Even though this rule has been in effect since June of 2006, it has only recently been an issue due to all of the properties purchased on the court house steps.
Even if the seller can provide documentation showing the costs and extent of rehabilitation that went into the property resulting in the increased value, a second appraisal will still be required. Also, the cost of the second appraisal may not be charged to the home buyer.
Bottom line: check the transaction/price history. A second appraisal could add additional time to your escrow, unless you plan accordingly.
Should you have questions regarding this article or any other mortgage related topic, please call me at (760) 500-1919 or email me: Kevin@MyCWMtg.com
