The HUD Secretary Shaun Donovan has announded, as of the 1st Feburary 2010 the 90 day seasoning that new homeowners have to wait before they are able to resell will be dropped temporary for 1 year.
To protect the FHA borrowers against predatory practices of “flipping,” the waiver is limited to those sales meeting the following general conditions;
- All transactions must be arms length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
- In cases in which the sales price of the property is 20% or more above the sellers acquisition cost, the waiver will only apply if the lender meets specific conditions.
- The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
- Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD’s website: www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf