Flipped Properties OK…No 90 Day Waiting Period …Financed at Full Market Value …48 hour Underwriting Approval

In March 0f 2010…FHA waived the “90 day …125% rule”.

Simply stated:

That rule had limited buyers from obtaining FHA financing on properties that had been acquired (by an investor who purchased a foreclosed property) at a steep discount only to promptly “re list” the home for sale at full market value (i.e. “Flip”).

As an example: If an investor purchased a home..for $100k….FHA limited the new buyers loan amount to 125% ($125k) AFTER a 90 wait period..even if the property would appraise for $150k) at fair market value.

Currently….FHA guidelines don’t prohibit a lending ceiling  properties for buyers…but here’s the bad news…all but one investor is still operating under those “90 day / 25% “guidelines (for whatever reason).

Currently I have one investor who does not limit the appreciation or have a 90 day waiting period.

Here’s the specifics:

1) Loans are available up to 200% (double) the investors acquisition cost.

2) No 90 day wait period.

3) 20% Down Payment

4) Requires 2 appraisals if the increase in value is over 25% of the original acquisition price. Transferred Appraisals allowed!!

4) Up to 50 “debt to Income Ratio”

5) 48 underwriting hour approval

6) 100% of down payment can be gift funds (Owner Occupied transactions only).