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Little publicized fact about FHA and buying a home

May 19th, 2008 · 3 Comments · fha mortgages and first time home buyers

I’ve had many home buyers over the last several
years use the
Kris Wales a Macomb County MI real estate agent in Chesterfield Township trusty and reliable FHA financing to
purchase their homes.
In Macomb County this holds true even more now with the incredibly low prices and the availability of FHA direct mortgage lenders.

Yesterday I was reminded of one of the pitfalls to watch out for that tends to be forgotten:

In 2003 to counter act the predatory “flipping” that had been going on in the housing market the government enacted what I term the “90 day” rule.

Nutshell version: If a home seller has owned the home for less than 90 days then you cannot get FHA financing/insurance on the home. If the
seller has owned the home between 90 and 180 days then you can get a FHA mortgage on the home but there are extra steps.  You would need a 2nd independent appraisal and if the home is in an area where predatory flipping has taken place, the mortgage lender would need to document that the increased value of the home is because it has been rehabbed and reflects the price asked for the home.

The full letter from HUD explaining this process can be found here.

If you have any questions about this rule please don’t hesitate to contact me. Also, if you are interested in an FHA mortgage to purchase a home in Macomb County one of my highly trusted sources is:

Tony Badalucco of Flagstar Bank in Shelby Township. Tony recently helped a buyer client purchase a condo that was a foreclosure property with a FHA mortgage. The young lady who purchased the condo was very satisfied and happy with not only her mortgage process, but with the purchase of her first home. Tony would be happy to discuss all aspects of FHA mortgages with you, in a non-pressured atmosphere. If you prefer calling Tony rather than
emailing him his cell phone number is 586-215-7291.

~Kris~

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3 responses so far ↓

  • 1 Chris Griffith // May 20, 2008 at 6:34 am

    I didn’t know that. I live in the land of flipping…or it use to be the land of flipping.

  • 2 Lanai // Oct 28, 2008 at 3:00 pm

    You write very well.

  • 3 Kris Wales // Oct 29, 2008 at 6:12 am

    Thank you Lanai. Good to see someone from Kingsport Tennessee visiting :-)

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