Home Buyers in our area who plan on using FHA financing will have an additional criteria to meet when purchasing recently renovated or "flipped" homes. A waiver that has been in place since 2010 that excluded these properties for a hold period expired on 12/31/14.
Any investor who has purchased and rehabbed a home must now hold title to that home for a minimum of 90 days. In many cases this will have no impact as the time to rehab can easily eat up some or most of that time. But an investor who finishes a project quickly may place the property on the market in hopes of an immediate sale which would exclude FHA financed buyers from purchasing the home and give VA and Conventional loan buyers an advantage.
This also changes the landscape a bit for investors who now must work in that 90 day hold and carrying costs as part of their purchase expense.
In this case, forewarned is forearmed and you'll just want to be aware that this new rule is in place.
Laura Roskelly, REALTOR®, GRI, ABR, ASR, RE/MAX Hall of Fame
The Roskelly Team – Fort Meade Area Real Estate
RE/MAX Leading Edge
1166 Route 3 South #106
Gambrills, MD 21054
410-507-2495 ~ Mobile & best number to reach me!
410-721-6694 ~ Office
443-926-0090 ~ Fax
Search for homes on-line at www.FortMeadeHomes.com
