FHA guidelines for Rehabs

[Rich Ramirez]

Hi BP Community: I'm pretty sure I'm understand correctly -- if one was to purchase a home with an FHA loan, there's a 12 month minimum to hold on to that property. However, if one was to sell one's property to an FHA buyer, there's a 90-day window the property should have title transferred multiple times. I know it's a long run on question, but I hope it makes sense. :) Hoping I'm wrong with the 12-month retention. Thanks, Rich

[Lisa Kohl]

Based on some research on previous threads here on BP There is a disclosure that's signed by the buyer at close, Document 92900 B- "Penalties for Loan Fraud: Federal laws provide severe penalties for fraud, misrepresentation, or conspiracy to influence wrongly the issuance of mortgage insurance by HUD. You can be subject to a possible prison term and fine of up to $10,000 for providing false information. Additionally, you could be prohibited from obtaining a HUD-insured loan for an indefinite period."

http://portal.hud.gov/hudportal/documents/huddoc?id=92900-b.pdf