What is the FHA deed restriction for a house purchased from the FHA?
meaning I bought a house that was repossed by the fha
- 1 decade agoFavorite Answer
FHA typically does not put restrictions on deeds. However FHA does impose rules on selling homes financed using FHA loans that are less than a yr or 6 months old- that is called "flipping". FHA's goal is to make homeowners out of renters, not to fund investor-for-profit opportunities. That is why the restrictions were put on FHA repo homes and others. FHA appraisals, like VA stay with the property for 6 months after they are issued. If a property was truly distressed, bought rehabbed and sold in less than a yr (or 6 months, I can not recall which) you will have to have a VERY GOOD explanation as to why the value went from X to XX in such a short time. To refi an FHA loan less than a yr comes with restrictions as well. I think it must "season" a bit first. That is also to stop consumer fraud, which has become a problem in recent years.Source(s): I do investment real estate, and I use to do homes.
- clyneLv 43 years ago
FHA 30 3 hundred and sixty 5 days fixed is extra suitable. once you have an 80/20 very own loan you pays extra via fact the interest on the 20 very own loan is often a lot larger, and interest relatively provides up. interest is tax deductible as properly