90 Day Flipping Waiver Extended
Last month we notified you that the 90 Day Flipping Waiver was set to expire at the end of 2011. However, late last week, it was announced that the waiver was to be extended until December 31, 2012 unless otherwise extended or withdrawn by the FHA. All other terms of the existing waiver will remain the same.
The below are the following terms for any FHA transactions where the subject property is being resold within 90 days of the previous acquisition and the sales price of the subject property is 20% or more above the seller’s acquisition cost:
1. Loans must be locked with Wells Fargo.
2. A 2nd full FHA appraisal is required and must be ordered from RELS Valuation. The appraisal cannot be paid by the borrower. The appraisal must verify the property seller has completed sufficient renovation, repair and rehabilitation work on the subject property to increase the value of the home.
3. An independent home inspection is required. At a minimum, the inspection must include the property structure, exterior, roofing, all interiors, all insulation, all ventilation systems and all health items.
4. All transactions must be arms-length and the seller must hold title to the property. Lender must ensure that there are no inappropriate agreements between the parties.
5. Loan must be submitted to Audit Review and Underwriting Management 2nd sign once all conditions are reviewed and cleared.
For more information, please contact your Guaranteed Rate loan officer.