The Investor Insights

This month, Freddie Mac announced all mortgage servicers must decide on a short sale within 60 days. This rule goes into effect June 15, 2012. A short sale occurs when a lender agrees to sell a mortgage for less than the amount owed. It is often used as an alternative to foreclosure because foreclosure can [...]

More good news for flippers! Last January, FHA Commissioner David H. Stevens announced a one-year suspension of that rule, permitting qualified buyers to obtain FHA mortgages on properties that were acquired by rehabbers less than 90 days before. The plan was set to expire at the end of this month but Vicki Bott, deputy assistant [...]

In July, FHA adopted new guidelines that lower the maximum loan to value (LTV) for multifamily market rate loans to 83.3%. Previously this was 85% for acquisition and refinancing on the 223 (f) program and 90% for new construction on the 221 (d)(4) program. Debt Service Coverage Ratios have been increased to 1.2 for market [...]

Calling all flippers!  Get the party started because the FHA has finally come to their senses. Yesterday, investors were granted an exemption to the 90 day seller seasoning rule.  Otherwise known as the anti-flip rule.  They determined that properties take less than 90 days to rehab and making buyers wait increases holding costs thus making [...]

Hidden away in the deep recesses of the federal government is a one-shot financing plan which will allow you to not only buy foreclosures but it will also to pay for repairs and upgrades. The FHA’s 203(k) program has been on the books for decades but over time it’s been rarely used. That’s changed recently, [...]