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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Flips with Fha Posted by mcoffer on August 28, 2010 at 8:01 PM In Reply to: Re: Flips with Fha posted by wheresmybailout on August 26, 2010 at 7:11 PM No worries.I appreciate your response. Thank goodness for cash offers. : 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 a Followup: Name : E-Mail : Subject : Comments: : No worries.I appreciate your response. Thank goodness for cash offers. : : : 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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