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New HUD Lending Rules, Huh?

Can someone, anyone, tell me where to find the ACTUAL lending rules for FHA buyers. Is it me or do they seem to change everyday? For the love of God, will the US Government just get the hell out of my way? All I want to do is buy super-crappy houses for pennies on the dollar, throw a chunk of money at them to make ‘em crazy pretty, and sell them for a huge profit. Simple, right?

Based on pure capitalism, my simple little business model seemingly flies directly into the face of the current administration, but its all I know – so I’m gonna keep on keeping on. That said, most if not all, of my buyers are first timer’s who use FHA or VA financing. I mean seriously, does anyone have 20% down anymore?

The FHA almost came to their senses by suspending the 90-day seasoning requirement on flips, and as we were all jumping for joy, we soon realized they didn’t. All the changes they made are now the subject of great debate. This is no lie – I’ve talked with lenders and other real estate investors just in the past few days who all seem to be confused regarding:

  1. What’s the deal with the 90-day rule? Can I sell a friggin’ house within 90 days or not?
  2. How many appraisals are needed and when a 2nd appraisal is ordered?
  3. What the rules are concerning flipping houses when you are an agent?
  4. What’s the deal with credit scores? Is it 580, or 620?
  5. Is there a new rule concerning raising the asking price to cover seller help?

Now, I KNOW, I read that they suspended the 90-day seasoning requirement and investors were jumping for joy thinking this applied to them- but then the FHA came out with more precise language. If you want to wade through it all you can do so by going to THIS LINK on HUD’s site.

The general consensus seems to be that the suspension applies only to buyer’s who are buying foreclosures from banks or clearing houses that sell bank REO’s – NOT – flipper who happen to get there rehabs done and sold under 90-days.

Tell me what you think. Tell me what you know! C’mon and chime in here and regale me with your knowledge on the subject.

More Helpful Links

FHA 90-Day Rule

FHA Considers Down Payment Requirements

FHA Increases Minimum Credit Score Requirement

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