Good Morning ,

 

I hope that your week is off to a great start!  Mine certainly is!  I'm super excited about the recent announcement from HUD that FHA has decided to waive their 90 day seasoning requirement.

 

It all began as a rumor in 2009 that  HUD would do this, but over the weekend they finally made it official!  Starting February 1st, 2010, FHA, Fannie Mae and Freddie Mac no longer require 90 days seasoning for purchases for the next 12 months!  

 

This is huge for investors!  If you've already heard about this then you're probably already doing a little dance, but for those of you who have not yet, please feel free to stand up and jump for joy!  Haha, I know I did!  Let me inform you to why this is such a huge announcement.  If you are flipping houses like we are, this information is Godsend!  

 

FHA, Fannie Mae and Freddie Mac buyers are known to Investors as "Retail Buyers".  Previously, these types of loans would require 90 days of seasoning, which means investors would have to hold title for 90 days before and FHA loan could be approved and you could sell the property to an end buyer using FHA.  This posed a huge challenge to Investors because most buyers who intended on occupying the home themselves want to use FHA and for several good reasons.  

 

Of course, many of you are in the business of flipping homes for a profit.  That is a great business model!  We want to make the most out of our properties too, and not being able to flip them to "retail buyers", who will pay the most money, was a huge bummer.  Well not anymore!  Now we can!  This is going to be an exciting year!  Take advantage of it my friends!

 

 

 

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