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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Seasoning Issues Posted by jnn on May 01, 2009 at 7:49 AM In Reply to: Re: Seasoning Issues posted by CC in OC on April 30, 2009 at 9:25 AM : If your end buyer is using FHA financing, you must have owned the house for 90 days. You can enter into a contract with the end buyer on the 91st day of your ownership. The appraisal can be done--as of May 1st through an Appraisal Management Company--on the 92nd day. We don't yet know how HVCC (Home Valuation Code of Conduct) will impact valuation when a flip is occurring. : If your end buyer is using conventional financing, seasoning is dependent on how much additional value you created in the property. Per Fannie/Freddie guidelines, seasoning is supposed to be a consideration only on refinances, but most lenders apply it to purchases and so seasoning is 6 to 12 months UNLESS you fully document why you bought it for X and now it's worth Y less than six months later, particularly in a declining market. : Tip: Take before and after photos of the property and fully document the rehab (receipts, etc.). Does the FHA 90-day rule apply to properties purchased at Trustee's Sales as well? Does it make a difference if the property is acquired through a Trustee's Deed? Or is the rule the same as for REO's? Follow Ups: Re: Seasoning Issues CC in OC 8:28 AM, 05/01/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : If your end buyer is using FHA financing, you must have owned the house for 90 days. You can enter into a contract with the end buyer on the 91st day of your ownership. The appraisal can be done--as of May 1st through an Appraisal Management Company--on the 92nd day. We don't yet know how HVCC (Home Valuation Code of Conduct) will impact valuation when a flip is occurring. : : If your end buyer is using conventional financing, seasoning is dependent on how much additional value you created in the property. Per Fannie/Freddie guidelines, seasoning is supposed to be a consideration only on refinances, but most lenders apply it to purchases and so seasoning is 6 to 12 months UNLESS you fully document why you bought it for X and now it's worth Y less than six months later, particularly in a declining market. : : Tip: Take before and after photos of the property and fully document the rehab (receipts, etc.). : Does the FHA 90-day rule apply to properties purchased at Trustee's Sales : as well? Does it make a difference if the property is acquired through a Trustee's Deed? Or is the rule : the same as for REO's? [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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