Resale policies of foreclosed homes are about to change. With the tougher credit market a good majority of homes are being purchased with FHA insured financing, as of right now a home is restricted (in most all cases) from FHA financing if the home has not been owned more than 90 days. This new temporary policy will begin on February 1, 2010 and will be available for 1 year allowing buyers especially first time home buyers the chance to buy bank owned, HUD or homes sold from private parties. The idea is to help quickly resale these properties and help stabilize and rejuvenate communities.
Conditions that will apply are-
- Transactions must be arms-length, no identity of seller, buyer and or other parties having interest in transaction.
- If the sales price is 20% higher than the sellers acquisition cost , then certain conditions must be met by lender.
- Waiver is limited to forward mortgages and will not apply to Home Equity Conversion Mortgage.
This is my retake on the news that came to me from U.S. Department of Housing- If you have any questions or are looking to take advantage of this new waiver please contact Josh at 208-353-7131 or josh@homeswithjosh.com. Simply call or email me with specifics of what type of property you are looking for and I will set up an account on my website for you.
