Q: Please explain why the Federal Housing Administration (FHA) will not allow a buyer to purchase a home that was sold within the previous 90 days? We have asked this question numerous times and everyone just goes around it and says FHA will not allow this type of loan.We have seen several properties that we really want, but we keep being rejected because we have to go FHA (we have only a 3.5 percent downpayment). Why is this a rule? Are there any ways to work around it? A: The only thing you can do to work around this issue is to restrict your house hunt to homes near or past the 90-day time frame. You must close your purchase or escrow at least 90 days following the closing of the previous purchase -- and honestly, many sellers will simply prioritize offers from wannabe buyers using conventional (i.e., non-FHA) financing. Let's get clear on what this rule is and why it exists. FHA doesn't actually offer loans; it simply insures loans made by mortgage lenders against the r...
by Andrew Wetzel | on Mar 22, 2017
by Gill South | 13 hours
by Brad Inman | 2 days
by Andrea V. Brambila | 24 hours
by Brad Inman | on Mar 21, 2017