Updated almost 15 years ago on . Most recent reply
FHA Guidlines
I'm looking to put a buyer/ tenant into a property within 30 days of our acquisition. I know the rule stating"Re-sales occuring 90 days or less following acquisition: If the re-sale date is 90 days or less following the date of acquisition by the seller, the property is not eligible for a mortgage to be insured by FHA." [24 C.F.R § 203.37a Sale of Property]
I am wondering if we can put the house for sale/ negotiate a contract without executing a purchase agreement and put let the buyer move in under the terms of a 3-5 month lease and security deposit with a higher rent that would be credited toward the purchase price. Our plan is to have a pre FHA approved buyer execute the contract after we have passed the 90 day period and have them close within 30-60 days under an FHA program. If they don't end up buying we will not renew the lease and put it for sale. Is this legal?