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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Flips with Fha Posted by wheresmybailout on August 26, 2010 at 7:11 PM In Reply to: Flips with Fha posted by Coffer on August 23, 2010 at 1:00 PM Sorry for my flip answer before. And sorry for that. FHA rule was changed, but adherence to the rule was and still is on a bank by bank basis, and even on a branch by branch basis. Some banks still require seasoning, FHA be damned. The best thing to do is to check with underwriting at the beginning of the deal (of course, this also fails some of the time). The nasty thing remaining about the FHA seasoning requirement is that there is now a cap on the profit you are allowed to make on a deal. You may be able to enter the contract withing the 90 days, but if you do, you may be required to show that you are making less than 20% on the deal. And this 20% is arbitrarily applied. Sometimes they will ask for expenses to net the number for 20% purposes, and sometimes they will just use the purchase price versus the sales price, regarless of expenses. And, sometimes, they will use the purchase price versus the sales price, and still ask for expenses. This, of course, is an excellent illustration of why banks fail. Follow Ups: Re: Flips with Fha mcoffer 8:01 PM, 08/28/10 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Sorry for my flip answer before. And sorry for that. : FHA rule was changed, but adherence to the rule was and still is on a : bank by bank basis, and even on a branch by branch basis. Some banks : still require seasoning, FHA be damned. The best thing to do is : to check with underwriting at the beginning of the deal (of course, : this also fails some of the time). : The nasty thing remaining about the FHA seasoning requirement is that : there is now a cap on the profit you are allowed to make on a deal. : You may be able to enter the contract withing the 90 days, but if you : do, you may be required to show that you are making less than 20% : on the deal. And this 20% is arbitrarily applied. Sometimes they : will ask for expenses to net the number for 20% purposes, and sometimes : they will just use the purchase price versus the sales price, regarless : of expenses. And, sometimes, they will use the purchase price versus : the sales price, and still ask for expenses. This, of course, is : an excellent illustration of why banks fail. [ 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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