{"id":11070,"date":"2010-01-29T17:56:40","date_gmt":"2010-01-30T00:56:40","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=11070"},"modified":"2010-01-29T17:56:40","modified_gmt":"2010-01-30T00:56:40","slug":"what-will-the-fha-90-day-flip-rule-suspension-mean","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11070\/what-will-the-fha-90-day-flip-rule-suspension-mean\/","title":{"rendered":"What Will The FHA 90-Day Flip Rule Suspension Mean ?"},"content":{"rendered":"

The FHA\u00a0 suspended the 90-day flip rule as of February 1, 2010<\/a>, for a period of up to one year.\u00a0 I’m not so sure lenders are going to play ball, though.\u00a0 I’ve found that lenders are implementing the 90-day seasoning rule for all<\/em> loans, not just FHA, these past six months.<\/p>\n

I warned the readers on Bigger Pockets<\/a> about my observations and offered this advice:<\/p>\n

If you purchase a property that looks like a good flip opportunity, you should be careful to not enter into a residential\u00a0 purchase agreement<\/a> (RPA),\u00a0 from an enthusiastic buyer, for at least 91-days from the date the deed was recorded.\u00a0 I\u2019m certain there will be instances where certain lenders will follow the HUD policy to the letter of the law but for now, I\u2019d enter every potential flip planning for a minimum 90-day holding period before you market the property.<\/p><\/blockquote>\n

Bigger Pockets has a lot of experienced investors and speculators who read the articles there.\u00a0 Ryan Hinricher<\/a> suggested that some lenders may be playing ball:<\/p>\n

This is probably going to go both ways. I would imagine some lenders will continue with overlays despite the 1 year suspend on the rule. As an investor who was an underwriter, the best thing to do is understand if your lending sources are going to work with the suspension or ignore it. My thoughts = lender by lender. I\u2019m planning on flipping many deals within 90 days.<\/p><\/blockquote>\n

Ryan’s comment proves that there are no absolutes in lending, especially today.\u00a0 While I think my observations are indicative of a growing trend, I imagine that a few lenders will follow the HUD guidelines to the letter and fund those transactions.\u00a0 My guess is that those lenders will charge a premium for those transactions, costing the buyer\/borrower more money for the risk involved.<\/p>\n

Should real estate scavengers, who buy distressed properties and remarket them at a profit, wait the 90 days to enter a residential purchase agreement or consider a “buy-down”, so that the lenient but more expensive lenders’ terms are consistent with “market rates”?<\/p>\n","protected":false},"excerpt":{"rendered":"

The FHA\u00a0 suspended the 90-day flip rule as of February 1, 2010, for a period of up to one year.\u00a0 I’m not so sure lenders are going to play ball, though.\u00a0 I’ve found that lenders are implementing the 90-day seasoning rule for all loans, not just FHA, these past six months. I warned the readers […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-11070","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":11762,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11762\/fha-va-tip-the-amendatory-clause\/","url_meta":{"origin":11070,"position":0},"title":"FHA\/ VA Tip: The Amendatory Clause","author":"Brian Brady","date":"April 13, 2010","format":false,"excerpt":"Here's a tip for real estate agents, when presenting an offer with FHA\u00a0 or VA financing; include the FHA\/VA Amendatory Clause to the Purchase Contract as part of the offer.\u00a0\u00a0 You'll save you, the seller's agent, the escrow company, the lender, and most importantly your buyer, a lot of last\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10474,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10474\/its-going-to-get-harder-to-get-an-fha-loan\/","url_meta":{"origin":11070,"position":1},"title":"It’s going to get harder to get an FHA loan……","author":"Tom Vanderwell","date":"December 2, 2009","format":false,"excerpt":"We'll get more details later today, but it looks like it's going to get harder and be more expensive to get an FHA loan.\u00a0\u00a0 A couple of main points to consider:FHA is currently losing money by the truckloads, so something has to change.The increased FICO scores, larger downpayments and reduced\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10960,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10960\/my-jim-casey-take-on-the-fhas-policy-to-address-risk-and-strengthen-finances\/","url_meta":{"origin":11070,"position":2},"title":"My “Jim Casey” take on the FHA’s Policy to Address Risk and Strengthen Finances","author":"Scott Schang","date":"January 22, 2010","format":false,"excerpt":"\"Before I knowed it, I was sayin' out loud, 'The hell with it! There ain't no sin and there ain't no virtue. There's just stuff people do. It's all part of the same thing.\" - (Preacher) Jim Casey \/ Grapes of Wrath Here's my take on the FHA 1\/20\/10 press\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.californiateachersandemployeeshomeloanprograms.com\/wp-content\/uploads\/2010\/01\/Read-all-about-it.gif?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":9880,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9880\/fha-broker-approval-delegated-to-approved-de-lenders-will-this-squeeze-out-smaller-players\/","url_meta":{"origin":11070,"position":3},"title":"FHA Broker Approval Delegated to Approved DE Lenders: Will This Squeeze Out Smaller Players?","author":"Tony Gallegos","date":"September 28, 2009","format":false,"excerpt":"Over the last eight days, calls from my clients and mortgage associates having been growing on a daily basis concerning the recent announcement by the FHA delegating mortgage broker approval to originate FHA loans to approved DE lenders. Quite frankly, many small lenders and mortgage brokers are concerned the mega-lenders\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7404,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7404\/why-fha-loans-wont-be-getting-cheaper-or-easier\/","url_meta":{"origin":11070,"position":4},"title":"Why FHA Loans won’t be getting cheaper or easier…..","author":"Tom Vanderwell","date":"March 9, 2009","format":false,"excerpt":"When the subprime market imploded and people starting rushing to FHA, the \"chant\" was that FHA is the new \"subprime.\"\u00a0\u00a0 FHA originations skyrocketed and anyone who didn't have a 700 credit score and a downpayment of 5 to 10% was quickly led into FHA.\u00a0\u00a0 I remember reading statistics of different\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9921,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9921\/bloodhoundblog-radio-fhava-in-2010-with-tony-gallegos\/","url_meta":{"origin":11070,"position":5},"title":"BloodhoundBlog Radio: FHA\/VA in 2010 (with Tony Gallegos)","author":"Brian Brady","date":"October 1, 2009","format":false,"excerpt":"Wondering about the future of VA home loans and FHA mortgages?\u00a0 Listen to my interview with Bloodhound Blog contributor, Tony Gallegos.\u00a0 We discuss: San Diego County VA\u00a0mortgage statistics (the market share number is going to astound you)\u00a0 Why VA loans have the lowest default rate among all four major loan\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=11070"}],"version-history":[{"count":4,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11070\/revisions"}],"predecessor-version":[{"id":11074,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11070\/revisions\/11074"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=11070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=11070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=11070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}