The TAX MAN tied up bunch of mine. Checks for 25K to him are frowned
upon and deeply regretted. I like the idea of collecting interest, but
I'm not buying or selling at the time. Sitting on my hands.
"I don't have anything against work. I just figure, why deprive somebody who
really loves it."
Let's put it another way. These programas are designed to help people
buy homes they intend to live in, and not to enable them to even try
to make profits in real estate.
Although it seems the OP bought it with cash** and the second buyer
was trying to get an FHA mortgage.
I'm wondering if there had been "conspiracies" of some sort where one
person bought with a regular mortage and sold on a pre-arranged deal
to another who got an FHA mortgage, and that was defeating one of the
goals of FHA. Perhaps the resale price in these cases was inflated,
although I thought a required appraisal would prevent even an FHA
mortgage for more than the house was worth (minus foreclosure costs.)
Whatever the reason, it's not likely to be a secret, and many real
estage agents, and almost all real estate lawyers would know the
**although he said he had to pay a mortgage over the winter, but I
guess he means cash he got by mortgaging the house, and used the term
to mean he didn't get an FHA mortgage, which is also a mortgage, and
pretty much like any other mortgage. So I"m not sure what the OP
meant by cash.
Both of these would be fine, so that's why I think the rule exists to
prevent free enterprise when it's not working as the FHA enactors
inteneded. Maybe in the way I suggested.
The minimum seasoning for FHA is 90 days with 2 appraisals required to
justify the difference between the buying and selling price.
Find an experienced FHA loan originator. Most do not know what they
are doing and muck up investors.
The first time I heard of the word flipping (in the real estate sense, heh),
it was in a negative way. There were appraisers and mortgage companies
and some flim flam types in on it. Buying houses and flipping them within
days to low income people. They were getting them those HUD loans/whatever.
Bottom line, they made a ton of money and a lot of people wound up in
houses not worth the mortgage on them. That's why there are rules like
this now. I guess if you want to flip quickly, you can't sell to people
for FHA type loans.
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