Cash purchase to FHA buyer

[Chris T.]

I know about the seasoning rules when it comes to buying homes using an FHA loan then turning around and selling them.

I also know that if I purchase a government foreclosure there are seasoning rules also when reselling.

But, if I buy a house with cash from an owner that owns a house free and clear then sell it to someone using an FHA/VA loan, are there seasoning issues as well?

[Will Barnard]

Yes, the seasoning issue with FHA is from your end buyer. If your end buyer is using FHA financing, then you have a 90 day seasoning issue. You also have (as of May 1, 2009) an appraisal issue. Good luck getting your property appraised at the market value you intend on selling for.

Originally posted by Jon Holdman:

FHA loans require 90 days from the time you are on title until you sign a contract to sell the property using an FHA loan.

Actually, it has been pointed out several times, originally by Ryan Weber I believe, that the 90 day seasoning period does not begin until the deed is filed with the county, that starts the clock, not just owning the property or the day escrow closes. On the 91st day from there, your end buyer may start the FHA process and enter into a PSA with you.