Our friends in Washington just suspended the 90 day seasoning rule for FHA loans. What does that mean for real estate investors? Many MORE buyers!
Currently, FHA does not insure mortgages on homes owned by a seller for less than 90 days. There are some exceptions to this rule. The new policy will allow rehab investors to buy foreclosed properties, renovate them and quickly resale them to owner-occupant buyers. The policy is also an effort by the administration to stabilize home values, particularly in markets hit hardest by foreclosures.
The waiver takes effect on February 1, 2010 and is effective for one year. FHA reserved the right to extend or amend the waiver.
Click here to read the HUD press release.
