Below is a website that you can visit that has all of the information concerning the recent release by HUD that they are waiving the requirement that homes need to be owned by the seller for at least 90 days before they can be sold to someone that is using FHA financing. The most important piece of information that I took from this new rule can be found in condition #2 concerning requirements if the new sales price is more than 20% more than the seller's acquisition cost. This wording can be found at the bottom of page 1 and the top of page 2.
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
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Folks gotta keep in mind there are some caveats to the new FHA no-flip rule change from an investors perspective, not the least of which is that "20% rule" you mentioned. People should really read it for themselves to really understand it.
ReplyDeleteAlso, folks should realize this isn't a revision. It's a 1 year WAIVER of the 90 day no-flip rule. On Feb 2, 2011 it'll all go back to the way it was...in spite of the fact that the FHA ITSELF acknowledges the seasoning rule is a hamper to healthy community redevelopment.
I put together a concise executive summary of the FHA waiver on my blog if you're interested.
...jp moses