In case you have not heard about the new FHA title season requirement. The press release was last Friday.
HUD has decided to temporally remove the 90 title season requirement for fix and flip investors. This is huge news because it is an indication that HUD sees investors as a beneficial and is trying to get out of our way. It is about time!
As of 2/1/10 and continuing for 12 months, there are no title seasoning requirements for investors that are flipping properties. There are only three conditions:
1. The transaction must be arms length
2. You will need to document repairs made to the property or have a second appraisal. This is the case if you are selling the property for more than 20% above what you bought it for. We are all selling for more than 20% so keep good records of your repairs and be prepared to go through some hoops to help your buyer get their loan.
3. It must be a foreclosure property
Stop in at www.wholesaledenverdeals.com to look for new properties to fix and flip.
Good luck with you next fix and flip investment