FHA title seasoning?

[Dustin Wise]

I'm currently putting together my business plan for fix and flips in Southern California. We've found some projects that could be turned around quickly since they are condos that only need minor work.

The rehab would probably take about 3 weeks so if priced properly I could probably have a buyer as soon as 3-7 weeks after I acquire the property!

Recently I was told about a title seasoning issue with FHA. It appears that unless I own the property for more than 91 days any interested buyer can not use FHA financing.

That's a problem. FHA is making a come back and people are really starting to realize the benefit. 3% down, gift funds allowed, non-occupying co-borrowers and on and on. I'd basically be cutting out a huge sector of the buying pool.

I'd be buying these properties as a short-sale or REO in most cases. Does anyone know if there is truth to this title seasoning issue? If so is there a way around it? What about buying in an entity and not as individual (which I plan on doing anyway for tax and liability reasons)? Help!