FHA Lifts 90-Day Waiting Period

Posted on January 26, 2010. Filed under: First Time Buyer help, Lenders & Loan info, Orange County Real Estate | Tags: , , , |

Great News For Real Estate Investors and New Home Buyers Alike:

Anti-property-flipping measure waived for one year!

By Inman News, Monday, January 18, 2010.

Inman News

Starting Feb. 1, housing regulators will suspend for one year a 90-day waiting period on property resales that it says has put FHA borrowers at a disadvantage in bidding on foreclosed properties.

The waiting period on FHA financing of resales was implemented in 2003 to protect the Federal Housing Administration’s mortgage insurance program from the impacts of home flipping.

The policy did not apply to properties repossessed by Fannie Mae, Freddie Mac, or state- and federally chartered financial institutions. In 2008, FHA lifted the 90-day waiting period on resales of all bank-owned (REO) properties (see story).

Now, although many other conditions still apply, the waiting period is being lifted on all resales — including properties purchased and rehabbed by private investors.

Research shows that acquiring, rehabilitating and reselling properties to prospective homeowners often takes less than 90 days, the Department of Housing and Urban Development (HUD) said in announcing the change.

Some sellers of foreclosed properties have been reluctant to enter into contracts from potential FHA buyers because of the cost of holding a property for 90 days, and the risks that a vacant property would be vandalized, HUD said.

Lifting the waiting period “will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities,” HUD said.

Lenders must have supporting documentation or a second appraisal if the sales price of a property increases by more than 20 percent from the seller’s acquisition cost, HUD said in publishing the waiver requirements. The waiver does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

No doubt about it.  Suspending the 90-day waiting period will be a major stimulus to the Real Estate market.  With quick turnarounds now possible for all properties purchased by FHA borrowers, re-sellers have a strong incentive to put more of their homes on the market. Because of this increase in available choices, FHA borrowers have an equally strong incentive to get in on the buying action.

If you’re ready to take advantage of the buying or selling opportunities that have emerged thanks to this new measure, I’d like to help. Contact me at 949.338.7408 or angie@askangie.com. Or follow me @AngieWeeks or @WeeksTeam.

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What’s a Hud home? How do I buy a HUD property?

Posted on October 14, 2009. Filed under: First Time Buyer help, Informed Investor Alliance, Orange County CA Foreclosures, Orange County Real Estate | Tags: , , , |

How to buy a HUD home in Orange County, CAIts interesting, we’ve been doing real estate for years now and haven’t had to answer the “How do I buy a HUD home?” question.  We don’t see that many come around.  Today, however, we found a 2/1/1 in Mission Viejo for 160K!

What exactly is a HUD home?

Of course, you know HUD stands for US Dept of Housing and Urban Development.  The listing agent, Barbara Kerr with Realty Execs, explained HUD homes as properties with FHA loans that had been foreclosed on.  Because FHA is a government backed loan, these properties go back to HUD when owners abandon the property or go through foreclosure.

How do I buy a HUD property?

Not just anyone can get their hands on one.  HUD homes have a special key to enter; they don’t have normal lockboxes and supra keys us Realtors typically use.  Interesting… *thought* there could be less competition for our buyers on these properties because this is an additional hoop to jump through. Of course, we checked the details on the website – we need to have a Name and Address Identifier number with HUD in order to make a bid.  It appears the required NAID # is issued to our broker, not us.  So, we’ve been in touch with Darrell our fabulous broker to see about getting all set up 🙂

Barbara, the nice & helpful *yay, rare!* listing agent, said she gives a class on it, I told her I would like to attend.  I’ll blog more after that…We’re always learning something in real estate!

Having capability to offer on HUD properties will help both our investor and first time buyer clients – double win!!

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Looking for Government Loans? Wachovia has an answer!

Posted on April 30, 2008. Filed under: First Time Buyer help | Tags: , , |

Hey all you “on the fence” Orange County renters, Wachovia has Mortgage solutions designed to meet your individual needs!

When you set out to find or build the perfect home, it’s important to have choices. The same is true when deciding on your mortgage. With a variety of fixed and adjustable rate government loans, competitive rates and exceptional service, Wachovia Mortgage can help you design a mortgage program to suit your needs.

FHA Loan
• Up to 97% financing available for 1-unit properties.
• Fixed and Adjustable Rate loans available.
• Easy qualification and flexible credit guidelines.
• Seller can contribute to the transaction.
• Non-permanent Resident Aliens eligible.
VA Loan
• Up to 100 percent financing on 1-unit properties.
• Fixed andAdjustable Rateloans available.
• Easy qualification and flexible credit guidelines.
• Seller can contribute to the transaction.

To find out more about Wachovia Government Mortgage Programs, please call:

Mark Frazer
Mortgage Consultant
5830 Naples Plaza
Long Beach, CA 90803
Direct: (562) 930-1477
Fax: (562) 856-8725

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