How long to hold on to foreclosures before resell.

[Bryan Weller]

Sorry, I'm having a rough day and my brain is fried. Can someone tell me or point me to a post that outlines how long you have to own a home you purchased from foreclosure before you can resell? I want to know for VA, FHA, HUD and whatever else you think of. I tried to search the forum but couldn't get the right keywords to get what I was looking for.

[Wayne Brooks]

Do you mean at the auction, as a REO, or as a short sale. Some have resell restrictions, depending on the seller.

[Bryan Weller]

I'm sorry. I did a horrible job explaining that. What I was asking was when someone comes to buy a home with VA or FHA financing (which is something like 95% of loans in my market), they don't like flippers in that if you are charging more than 20% of what you paid within a certain time frame, the qualification won't go through within a certain number of days unless you go to great lengths to show marked improvements in the house justifying the increase in value. I want to know that time frame.

[Bryan L.]

I'm in TN too, and most buyers here are using "rural development" loans - and these do not require any seasoning. I don't think VA does either. On FHA I think it's 90 days. It will probably take you at least half of that to do a rehab anyway. Check with a local lender. Do you have Mortgage Investors Group (they are lenders in the first-time buyer market) in your area?

[Wayne Brooks]

Okay, that's not really just an FHA problem who I believe require 2 appraisals if resale is within 90 days. More importantly, it's an overall appraisal issue, as that house is it's own best comp. Expect to show receipts and document improvements to get a true FMV on your appraisal.