My Listings

Monday, January 18, 2010

FHA Lifts 90-day seasoning rule

Provided by:
Allana Ellis
Loan Officer
150 120th Ave NE, Ste 200
Bellevue, WA 98005
Phone: 425-945-8000
Mobile: 425-941-7901
Fax: 425-945-8155

Breaking News

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
The waiver will take effect on February 1. 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner.
Limits to waiver:
1. All transactions must be arms length.
2. In cases in which the sales price of the property is 20% or more above the seller’s acquisition cost, the waiver will only apply if the lender meets certain specific conditions.
3. The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program. Specific condition and other details are in the text of the waiver at

No comments:

Post a Comment