Is there a way around the 90 day FHA title seasoning?

[Phillip Lanier]

Hello BP friends,

I am looking for any insight on how I can structure the following deal. I have negotiated a "sub to" deal where I will be paying the owner $3,000 and getting the deed subject to an existing mortgage. The house will need about $30k in repairs. I have an end buyer that will take the property as is and he will take responsibility in the repairs. My original plan was to owner finance it to a buyer, doing a wrap on the existing loan. However, the buyer is able to get an FHA loan for the purchase as well as the repairs. The challenge is, FHA requires a 90 day seasoning on the title. So here are my options that I'm aware of and am hoping someone knows of any other creative ways to structure it.

1) I close with the seller and wait 90 days to season the title for the end buyers FHA loan.

2)  I sell the contract, however, this will expose my spread and am afraid the end buyer and/or seller will want to cut me out and deal direct.

The county has the house appraised at $300,000.  The existing loan which I will be taking over is $133,000 plus the $3,000 to the seller.  I will be selling it at $170,000.  

So how can I handle the 90 day title seasoning challenge?  What other options are there?

Thank you in advance!

Phillip Lanier