What is the seasoning rule with FHA loans?

[Mark C]

someone mentioned this to me but i did not fully understand it. I live in California

[JR McGee]

HUD announced today January 15, 2010 that it is temporarily relaxing its 90 day seasoning rule which currently prohibits FHA loans for properties owned by the seller for less than 90 days. See the HUD press release for more details.

According to the press release, "The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities."

The new rule will take effect February 1, 2010 and will be in place for one year. To try to avoid the use of the FHA financing for flipping HUD is putting certain restrictions in place.

Hope this helps!

JR McGee

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