It's called "seasoning," and you will hear mortgage lenders talking about having programs that don't require seasoning. (Most do.)

From HUD: http://www.hud.gov/news/release.cfm?content=pr03-055.cfm

This appears to be old news, but I think in a lot of areas (like mine) FHA loans weren’t in use for years because the loan limits weren’t high enough. We’re all getting reacquainted with the product now...

Wonderful news!


News Release
HUD No. 08-082
Lemar Wooley
(202) 708-0685
www.hud.gov/news/ For Release
Friday
June 13, 2008


FHA EXTENDS FINANCING FOR IMMEDIATE PURCHASE OF FORECLOSED HOMES
Measure seen to bring stability to home values and accelerate sale of vacant properties
WASHINGTON - In an effort to stabilize declining home values in certain neighborhoods, the Bush Administration today announced a temporary policy that will extend government-backed mortgage insurance and allow for the immediate sale of vacant foreclosed properties.

For one year, the Federal Housing Administration (FHA) will insure foreclosed properties marketed and sold by property disposition firms on behalf of lenders. The properties, which must purchased by owner-occupants, will no longer be subject to the customary 90-day waiting period.

"A glut of foreclosed and abandoned homes harms neighborhoods, frustrates homebuyers and delays a community's recovery," said Brian D. Montgomery, Assistant Secretary of Housing-Federal Housing Commissioner. "The action we take today will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes in neighborhoods across the country."

FHA's new temporary policy will help stabilize neighborhoods experiencing high rates of foreclosure by reducing the inventory of unsold properties. Many foreclosed properties remain vacant for months, inviting vandalism and reducing values of surrounding homes. To address that sizeable inventory, lenders have hired companies that specialize in the marketing and disposition of foreclosed homes. It's reasonable and appropriate that these firms have the ability to sell the properties to borrowers using FHA financing.

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This prohibition is intended to prevent property "flipping," a predatory practice that strips a home of its equity before being quickly resold at an inflated price to an unsuspecting buyer. FHA's new policy will permit the immediate sale of foreclosed properties to legitimate borrowers wishing to use FHA-insured financing.

To read the full text of this new temporary policy, visit FHA's website.

Greetings! Here is, from what I understand, the latest on FHA anti-flipping and the circumstances which have temporarily suspended the 90 day rule as of June 9, 2008. Check out the link below for more info. Hope it helps! Be well.


FHA anti-flipping rule waived!

Hi all, Tyler here from sunny Seattle. Just thought I'd chime in on this discussion. This should open up alot of opportunity for buyers, sellers, and agents yes! We have already put together a program to take advantage of this. If interested feel free to take a look. Hope all is well and I look forward to being a part of your community!

Tyler Musson
www.TurboHomesaleMethod.com

I am trying to close on a FHA loan and the docs need to be submitted by noon tomorrow. The loan is for a condo. However, after requesting several additional pieces of information, the underwriter now wants to know how many condos within the association are currently financed by FHA. The loan officer stated that they only want 10% of the condos financed by FHA. Any comments? Has anyone heard this one? If so, any suggestions on where to get this info in a hurry?

So the complex doesn't turn into a ghost town? Just a thought.

Condo Association.