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Joined: Jul 2008
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Resales Occurring 90 Days or Less Following Acquisition
If the owner sells a property within 90 days after the date of acquisition, that property is not eligible security for a mortgage insured by FHA unless it falls within one of the exceptions to the time restrictions on resales set forth in §203.37a(c) of the regulations. FHA defines the seller's date of acquisition as the date of settlement on the seller's purchase of that property. The resale date is the date of execution of the sales contract by the buyer that will result in a mortgage to be insured by FHA.
Exceptions to 90-day Restriction
The following sales are exempt from the time restrictions provided by §203.37a:
· Sales by HUD of its Real Estate Owned
· Sales by other United States Government agencies of single family properties pursuant to programs operated by these agencies.
· Sales of properties by nonprofits approved to purchase HUD-owned single-family properties at a discount with resale restrictions.
· Sales of properties that are acquired by the sellers by inheritance.
· Sales of properties purchased by employers or relocation agencies in connection with relocations of employees.
· Sales of properties by state and federally charted financial institutions and Government Sponsored Enterprises.
· Sales of properties by local and state government agencies.
• Upon FHA's announcement of eligibility in a notice (i.e., ML), sales of properties located in areas designated by the President as federal disaster areas, will be exempt from the restrictions of the property-flipping rule. The notice will specify how long the exception will be in effect and the specific disaster area affected." Also bank REOs are exempt from the rule but you said that you're buying this home from an individual, not a bank. Your realtor is wrong. I'd probably give a call to your contact at Countrywide if that is where you'll get the loan from.
Last edited by kap17; 08/15/08 04:21 PM.
A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb
The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond
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He's just worried about the appraisal since it's FHA and I'm asking for 6% in credits back because my offer is $7k over comps - which are REOs - in the neighborhood.
I pointed out this house is very "clean"; whereas, the others are REOs and need some fixing - and in some cases a lot of fixing - before moving in. FHA loans have an addendum to the purchase contract stating that if the appraisal comes back at a value less than the sales price, the borrower has the right to back out of the deal with no penalties so that should protect you a bit. Depending on your loan to value, seller concessions are limited. The max is 6% if the LTV is 80%. I think at higher LTV it is limited at 3%.
A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb
The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond
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***sent email to loan agent at Countrywide - she's fast, will hear back quickly***UPDATE:She's in a meeting. Gotta wait. I usually hear back from her within five minutes - she sooooo spoils me. 
Contrarian, extraordinaire
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Depending on your loan to value, seller concessions are limited. The max is 6% if the LTV is 80%. I think at higher LTV it is limited at 3%. Nehemiah 3%; closing 3%; LTV 97.15% (I already have a Good Faith Estimate (estimate) based on the offer GFE will change of course once in contract and numbers are finalized). I have to be in contract by 09-01-08 and close escrow by 09-30-08/10-01-08 as Nehemiah is going away on 10-01-08.
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...from Carmen at Countrywide: Unfortunately the contract has to be dated after the 90 days for purchase date. RATS!! Suggestions?!
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***Call to Realtor***
Realtor states...we wait. Realtor states that Maxine Waters ( D - Los Angeles) has a Bill pending extending Nehemiah.
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Seriously considering going conventional with a 5% down if the seller won't wait for the 91 days for FHA and Nehemiah. I've been doing this real estate thing for nine months and its getting tiresome and old.
...didn't really want to use my own money if I qualify for "programs" out there - but I don't want to lose another home - the whole point of this adventure was to start being able to claim interest deductions and to stop paying rent.
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Pooh-Bah
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...didn't really want to use my own money if I qualify for "programs" out there - but I don't want to lose another home - the whole point of this adventure was to start being able to claim interest deductions and to stop paying rent. As an idle aside, the reason real estate is often at the centerof a bubble or a crash is because the government distorts the market by offering "programs" and by allowing "interest deductions".:-) Yours, Issodhos
"When all has been said that can be said, and all has been done that can be done, there will be poetry";-) -- Issodhos
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California has a program where some properties that are foreclosed on can receive points down on the interest rate for first-time buyers. The monies to pay for those points down is floated by bonds by the State.
The theory is to stimulate first-time home buying interest - not investor interest.
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Pooh-Bah
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California has a program where some properties that are foreclosed on can receive points down on the interest rate for first-time buyers. The monies to pay for those points down is floated by bonds by the State.
The theory is to stimulate first-time home buying interest - not investor interest. It doesn't have anything to do with the buyer's classification, california rick. It has to do with government induced misallocation of 'money' resulting in an artificially created higher demand for whatever the government is pushing at the time. Politicians hype real estate and legislate incentives at all levels because it is a basic industry that creates tons of jobs, provides mucho tax pickings, mega votes, mega campaign contributions, sweetheart deals for themselves (ask Obama;-)), lotsa profitable corruption opportunities, etc. Everybody wins -- until it comes time to pay the piper. Unfortunately, the downside of these government-induced distortions inevitably result in a bubble that does nasty things to a lot of people when it pops and deflates. You, as a prospective buyer, are a current beneficiary of that cyle by dint of getting in after the "pop" when prices began to fall (and may continue to fall). Please do not misconstrue what I am saying. If there are legitimate programs being offered for which you qualify and which would benefit you, it simply makes since for you to use them because that is the way the gaming table for home purchasing is currently arranged. Yours, Issodhos
Last edited by issodhos; 08/16/08 03:29 PM.
"When all has been said that can be said, and all has been done that can be done, there will be poetry";-) -- Issodhos
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