FHA QUESTION

[John Baskin]

While I understand that that when dealing with an FHA Buyer, I must hold title to the property for 90 before selling it, my question is if the property has to be held for 90 before the property can close, or before the property can even be appraised by FHA? In other words I have a property that I have been made a "final and best" CASH offer at $108K (which would net me a paltry $3K. However, I also have been told by a realtor that tomorrow I will be made an offer (likely significantly closer to my $120K asking price) but will be an FHA loan. The rub is that my 90 day waiting period that I must hold title to the property does not expire until August 2nd---24 days from now and I don't know what to do. Behind curtain #1 is a 3K profit with a cash buyer scheduled to close on the 28th, or the possibility of $10-13K profit from this FHA buyer---but I run the risk that she bails, FHA doesn't appraise the house for the $118-$120K that I am asking, or she backs out.

The most important question I'm asking again is whether the FHA buyer could still get the FHA loan assuming we don't CLOSE until after the 90 day holding period, or whether it means that we cannot even begin the appraisal and docs until after the 90 days? Please advise...thanks!