FHA 90 day Flip Rule Waiver 2/01/2010
Post date: Oct 28, 2010 3:51:0 PM
Here are the 6 things you need to know about these changes:
1. Waiver takes effect February 1st, 2010 for a period of one year unless extended.
2. Investors are now exempt from the 90-day seasoning rule.
3. All transactions must be arms-length.
4. No identity of interest can exist between buyer and seller.
5. If sale price is 20% or more of the seller's acquisition cost, the lender must:
a. provide supporting documentation and/or a second appraisal and
b. order an inspection of the property and provide it to the buyer.
6. The waiver is limited to forward mortgages only
To read the text of this wavier : http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf