FHA minimum hold time

[Brandon Purdeu]

Is anyone spun up on FHA minimum hold guidelines? We bought a flip January 17th and finished it and put it on the market last month. I accepted a contract on the home this weekend and it was for an FHA loan. Didn't cross my mind until this morning that I remember something about a required ownership period of at least 91 days prior to selling or accepting a contract. As is right now we will close before the 91st day (April 10th). Any mortgage brokers that can give me some advice on the topic would be appreciated.

I've got the buyers lender looking into it and my mortgage broker looking into it but no answers as of yet...

[Chris Ramos]

Howdy

I'm surprised the buyer's lender didn't catch this right off the bat.

The contract needs to be dated on the 91st day, to meet the FHA Guidelines.

Unless guidelines have recently changed this is the rule.

Good Luck.

[Upen Patel]

@Brandon Purdeu You can't even accept the contract with FHA right now, until 90 days are up. Cancel the contract and move on. No way around it.

[Mike Flora]

The above posts are right. I HATE THIS STUPID RULE. Hurts both buyers and sellers. They need to catch up with technology and figure out a way to check for the fraud this rule was put into place a long time ago.

[Brandon Purdeu]

Why FHA!!! I'll see if I can get them into a conventional 95%. I'm getting conflicting opinions from mortgage people. Being told it can't close before the 91st day nothing about contract date. I'll post an update once I get one from the buyers lender.

[Ryan Substad]

I ran into this issue on my last flip. Our close date was after the 90 days but all the paperwork had to be redone a couple weeks before closing to date everything after the 90 days. If you can try and get the buyer into a conventional loan, that would probably be the best option. What date is closing scheduled for right now?

[Omar Khan]

@Brandon Purdeu I would save myself the hassle and either get out of the contract or work with a local mortgage broker and move into a conventional 5% down loan. If you decide to go the mortgage broker way and are successful, you will develop a solid relationship as well. 

Just curious, if you have a good job/decent credit score, why even look @ FHA? In many areas, similar or better terms are available from conventional loans (through good mortgage brokers).