FHA 90 day Flip Rule Waiver 2/01/2010

Post date: Oct 28, 2010 3:51:0 PM

Market Update

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