Great news for Delaware Home Buyers looking to purchase a home through FHA, the 90-day seasoning flip rule has been temporarily lifted by FHA. This change will allow buyers in Delaware to use an FHA Mortgage when purchasing investor and bank-owned properties that have been owned for less than 90 days by the seller.

On Friday, January 15th, 2010, FHA, (Federal Housing Authority) released this update as an excerpt from the Code of Federal Regulations without a corresponding Mortgagee Letter and contains information about FHA’s policies regarding the waiver of the 90-day seasoning required for sellers.

Here are the 6 things you need to know about these changes:

1. Waiver takes effect February 1st, 2010 for a period of one year unless extended.
2. Investors are now exempt from the 90-day seasoning rule.
3. All transactions must be arms-length.
4. No identity of interest can exist between the buyer and seller. FHA identifies an identity of interest where the purchaser and seller are related, and/or affiliated through a business arrangement.
5. If the sale price is 20% or more of the seller’s acquisition cost, the lender must:
   a. provide supporting documentation and/or a second appraisal and
   b. order an inspection of the property and provide it to the buyer.
6. The waiver is limited to forward mortgages only. (no reserve mortgages)

For more information or to get the process going, please call me today at 302-703-0727 or you can APPLY ONLINE HERE.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713