FHA Returned to Anti-House Flipping Restriction January 1, 2015

FHA Returned to Anti-House Flipping Restriction January 1, 2015

FHA Returned to Anti-House Flipping Restriction January 1, 2015 While you were ringing in the new year, the FHA was ringing in the anti-house flipping restriction What does this mean to you? In short… the FHA’s Property flipping temporary waiver on the 90 Day Rule expired on December 31, 2014 and will not be extended. This was announced by the Federal Housing Authority on December 11, 2014.  It is important news for investors and home buyers to be aware of starting January 1, 2015 as investors will need to wait 91 days before they can execute a sales contract on a flip for a buyer using FHA financing to purchase the property. What is a “flip” or “flipping”? Property flipping is described by HUD as a practice whereby a...

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203K Streamline – What Improvements Are Eligible With The 203K Streamline Loan?

203K Streamline – What Improvements Are Eligible With The 203K Streamline Loan?

In today’s real estate market and economy more people are looking for ways to improve their home. Also people are buying bank foreclosures and fixing them up. But the problem many people are running into is the difficulty of getting a construction or rehab loan. That is where the 203K Streamline Loan steps in. The official name of this program is the FHA Streamlined 203(k) Limited Repair Program. The 203K Streamline Program will allow a homebuyer or homeowner to purchase a home or refinance a mortgage plus include in the loan the costs of repairs and improvements in the loan. The 203K Streamlined loan is not a government loan, it is provided though FHA Approved Lenders throughout the country. Because the 203K Streamline Loan is insured by FHA, the FHA...

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203K Mortgages – A Real Story About Real People

With a growing family, Rob and Megan wanted to find a larger home in their current neighborhood. But four-bedroom homes under $200,000 were hard to come by in their area, this year, because fewer properties are for sale. When they saw a 2,100-square-foot home that needed cosmetic repairs this fall, it was an opportunity the family could not pass up. So they worked with their real estate agent and lender to secure a FHA 203k loan. The FHA 203K loan is a rehabilitation loan that enables a home buyer to finance the purchase of a house and the cost to rehabilitate it through a single mortgage. The loan can be used for minor repairs or a near reconstruction, as long as the foundation remains in place. Rob and Megan knew they were not handy people. Plus, they both work...

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Faulty FEMA Maps Force Homeowners to Buy Unnecessary Insurance

As seen on The Today Show:   Visit NBCNews.com for breaking news, world news, and news about the economy When Nancy and Mike Heath wanted to refinance their home, they were stunned to learn they would have to pay for flood insurance to get the new mortgage. Their house sits up on a hill with no real risk of flooding. “All of a sudden, we were slapped with this huge flood insurance payment that we didn’t expect,” Nancy said. The Heaths’ bank said that, based on official maps made by the government agency FEMA, they live in a flood zone. But a TODAY investigation found that some of those maps, which are used around the country, are way out of date and riddled with errors. The Heaths’ map, for instance, was from 1981 — more than...

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FHA Reduces Homebuyer Waiting Period for Victims of Recession

FHA Back to Work Announcement: August 2013: Boomerang buyers are able to buy again a little sooner after FHA’s recent announcement of the Back to Work – Extenuating Circumstances exception. People that lost their homes due to a loss in employment or income, now have the ability to buy as soon as 12 months after a bankruptcy, foreclosure, short sale or a deed in lieu. Extenuating Circumstances This is long awaited program that adds specification to the extenuating circumstances exception guidelines to specifically address shortening the waiting period to buy a home after the hardship. Extenuating Circumstance exceptions are typically very vague and rarely granted.  Unlike other extenuating circumstance definitions, the Back to Work program gives us a very...

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ACT NOW If You Are Considering An FHA Mortgage!

Change is a comin’! In a recent release from the U.S. Department of Housing and Urban Development, the subject line sums it up: “Revision of FHA policies concerning cancellation of the annual Mortgage Insurance Premium (MIP) and increase to the annual MIP“. The intention of these changes is to continue to strengthen the Mutual Mortgage Insurance Fund. To sum it up, there are 2 parts to the change that will affect consumers. Part 1: FHA Mortgage Insurance Premium Changes The FHA is an insurer of mortgage loans and, by law, it is required to maintain a 2% reserve in its Mutual Mortgage Insurance (MMI) fund. Currently, because of bad loans made last decade, the FHA’s reserves are -1.44 percent. In an effort to rebuild the MMI,...

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