HUD is changing its rules to allow investors to purchase homes with FHA loans, fix them, and sell them by waiving the requirement to hold property 90 days.
These sales will be allowed for 1 year from Frebuary 1, 2010 unless extended further. They will only by allowed under strict guidelines including:
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 percent or more above the seller's 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.
See the HUD web site for Details.
