FHA ANTI-FLIP RULE

This article was posted by a Loan Consultant on Active Rain, I thought it would be a good thing to repost for those who missed it.

TED CANTO, Sr. Loan Consultant (Academy Mortgage):
90 Day FHA Anti-Flipping Rule: Can you finance FHA before the 90 days?

I do not mean to kick the dead horse while it is being buried but my previous post on the 90 Day FHA Anti-Flipping rule generated 4300+ hits, so of course I stopped kicking the horse and went to the next farm to milk the cow. Obviously you know this is a hot topic in our industry and we are always hoping the rule just goes away. However, it will not. The important thing here is to understand it, embrace it and work with the lemons that are handed to us. OK OK!! I will tell you what this post is about already.

In regards to the FHA 90 Day Anti-Flipping Rule, FHA is mainly concerned with the date in which the sale has been bonafide NOT the recording date. However, I will put the disclaimer on this statement. Most banks do not intepret the rule for what it is. Based on FHA's interpretation, some lenders will indeed allow the loan to fund with an FHA loan. However, most banks' internal policies do not allow this to occur, they instead base their decision on the recording date not the SETTLEMENT DATE.

"If the owner sells a property within 90 days after the date of acquisition, that property is not eligible security for a mortgage insured by FHA unless it falls within one of the exceptions to the time restrictions on resales set forth in §203.37a(c) of the regulations. FHA defines the seller's date of acquisition as the date of settlement on the seller's purchase of that property. The resale date is the date of execution of the sales contract by the buyer that will result in a mortgage to be insured by FHA."

If this does not make sense, allow me to break it down for you:

Typical Scenario:

Investor buys property and sale is executed on September 2nd (Settlement Date)
Deed/ Title is recorded on September 30th
Seller writes contract on December 3rd and attempts to close the transaction on December 15th and gets stuck due to the lender not allowing the sale (ie: sale date is not January 1st)

The way the rule actually works:

Investor buys property and sale is executed on September 2nd (Settlement Date)
Deed/ Title is recorded on September 30th
Seller writes contract on December 3rd (91 Days after settlement) and closes the transaction on December 15th per FHA guidelines NOT January 1st (which most lenders will limit you to).
SOLD!!

If you have any questions or interested in learning if your property fit into this box, contact Ted to review.

If you are looking to purchase a home, contact Cynthia at:

Emage` Fine Properties, LLC

602 697-4487

http://www.homes4saleaz.com/

HOMES FOR POLICE OFFICERS, FIRE FIGHTERS AND MEDICAL PERSONNEL

The Neighbor Next Door initiatives are a collection of FHA's home sales programs designed to help communities and promote homeownership.
If you are a law enforcement officers, firefighter, emergency medical technicians or teachers you have an opportunity to purchase homes in these communities where homes are set aside for you in helping to revitalize a community. HUD provides a substantial incentive in the form of a fifty percent discount off the list price of eligible properties.

Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.

How the Program Works

Eligible Single Family homes located in revitalization areas are listed exclusively for sales through the Good Neighbor Next Door Sales program.

You must meet the requirements for a law enforcement officer, teacher, firefighter or emergency medical technician and comply with HUD's regulations for the program.HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided that you fulfill the three-year occupancy requirement.

For more information contact:

Cynthia Smitherman, CDPE, ABR, GRI, DB,VP AAREB

Emage` Fine Properties, LLC

602 697-4487

http://www.homes4saleaz.com/

WHAT WE HAVE DONE FOR OURSELVES ALONE DIES WITH US - WHAT WE DO FOR OTHERS IS IMMORTAL

What We Have Done For Ourselves Alone Dies With Us- What We Do For Others is Immortal

As service industry specialist in the area of Real Estate, we orchestrate wonderful things for perfect strangers. Contrary to all the negative comments from disgruntled people regarding Real Estate Agents, our hearts are in the right place. I have been through weddings, divorces, births, and death with my clients. I have seen them happy, sad, broke, prosperous, employed and unemployed. I have seen them healthy, and I have seen them ill.

My clients become more than business acquaintances, many have become very dear to me. One couple who I secretly refer to as "My Kids", experienced my fussing over them like a mother hen when helping them purchase their first two homes. I watched their children grow from toddlers, to pre-high school-er, and soon to be high schoolers.

I have another family who I am also very fond of, and genuinely am happy to hear from when they call just to say hello. It warms my heart when they ask of my family by name, one by one. It let's me know they care enough to remeber that my father has cancer, or that my son is a Chef, they care enough to ask of my husband, and lastly to ask how I am doing. To them, I am more than the lady that helped them purchase a home. I am their friend.

I have helped many people with different nationalities, different educational backgrounds, different religions, and different political views than me. However, there is always a common bond that transcends any culture, or politcal differences; that bond is genuine respect, and admiration.

So I can honestly say, that I am Proud to be a REALTOR, the rewards are greater than any commission, my greatest reward is that I can honestly say, my clients are truly friends and have become a part of my extended family.

Cynthia Smitherman, CDPE, ABR, GRI, DB, VP. AAREB

REALTOR, REALTIST. 602 697-4487 http://www.homes4saleaz.com/

Making a House Your Home

As a real estate professional I have sold many homes throughout the 13 years I have been in the business. One of the most interesting things I have found with each house sold, is how people turn them from houses to homes. I have found that each home has its own distinct personality.

Now I am not speaking of whether the house is a two story home, or ranch styled; it is more than that. When entering a home, I can tell if the people love to cook, enjoy music, entertainment or sports. I can determine if the home is occupied by a single person or a family. Or if they like dogs, cats, birds, reptiles, or even pot belly pigs. Yes, I have entered many homes where Fido is actually "Rosie", the pet pig.




Speaking of Pets
When entering homes, I have been attacked by dogs, cats, and birds. I am happy to say, I have not yet been attached by a pig. I have been startled by two tiny eyes glowing from under a bed, it was a pet iguana in his favorite hiding place. I have seen pet tarantulas, mice, frogs, and turtles. I have stepped over shedded skins of snakes, and even found a snake guarding the family safe deposit box. (No ATM card need here) YIKES!


Colors & Decor

Colors in a home says a lot about the occupants as well. I can tell if they are happy, sad, angry and even confused. As an example, if the dining room walls are "red", I know guest usually linger at the dining room table, (red stimulates the appetite). If I see murals of balloons, clouds, picket fences in a bedroom, I discern that first of all, it is a little girl's room and her happiness is most important to her parents. Of course the obvious tale tale signs of a boy's room is blue walls, college flags, race cars, football, etc. Teenagers rooms are obvious too. Posters of entertainers, "DO NOT ENTER" signs on bedroom doors, bright electrifying colors - and usually the Maid is on vacation.
Helpful Hints
Turning a house to a home involves reflecting your very own personality, whether through paint color or decorative accessories however, when placing your home on the market you want to appeal to anyone and everyone, which may mean making important changes.


Here' what you may want to do:
1. De clutter - makes the rooms looks extremely large. Remove personal photos, memorabilia, take out unnecessary furnishings
2. Tone down paint colors - no deep colors; makes rooms look smaller
3. Tidy up closets, children's rooms, rec rooms, garage areas
4. Clean windows reflects light - opens up the rooms
5. Refresh or replace worn out furniture
6. When inviting potential buyers into your home, make sure your pets are in a "holding" area away from the flow of the home
7. Paint where needed
8. Tighten up the curb appeal- grass cut, bushes trimmed, etc.

9. Get a home inspection so you will know what to expect when getting the repair list from the Buyer
10. Hire a staging professional professional help is always the best


You want to look at your house as a product to sell, not as your home.


With the accessibility of the Internet, people not only learn how to decorate their homes, but also find information on selling their homes.

Always trust the sale of your home to a real estate professional one who is credentialed, familiar with the area you are interested in selling or purchasing, and has years of experience in the real estate industry. It will save you money, time and headaches. For more information of how to prepare your home to sell, contact me for a free consultation.

Otherwise, enjoy your home, until you are ready to turn it into a house.