How to Finance & Build 10K/month Cash Flow from Rentals!


Enter text appeared on the image above:

How to Finance & Build 10K/month Cash Flow from Rentals!


Enter text appeared on the image above:

Questions? Interested in more info about our firm and real estate investing?

Contact our firm to learn how we can assist you with your real estate projects.


FHA waiver of 90day seasoning, what it means to investors

This update from FHA was released on Friday January 15th, 2010, as an excerpt from the CFR (Code of Federal Regulations) without a corresponding Mortgagee Letter and contains information about FHA’s policies regarding the waiver of the 90-day seasoning required for sellers.

6 Points to Know:

1. Waiver takes effect February 1st, 2010 for a period of one year unless extended.

2. Investors are now exempt from the 90-day seasoning rule.

3. All transactions must be arms-length.

4. No identity of interest can exist between buyer and seller.

5. If sale price is 20% or more of the seller’s acquisition cost, the lender must:

a. provide supporting documentation and/or a second appraisal and

b. order an inspection of the property and provide it to the buyer.

6. The waiver is limited to forward mortgages only.

To read the text of this waiver and specific details:

What it means to investors?

Definitely a step in the right direction. Many investors do not want to hold property for 90+ days and incur holding cost, risk of vandalism, etc. This could increase investor demand and primary residence buyers. Many of the properties flipped especially rehabbed will sell for 20% more than acquisition cost so the inspection and 2nd appraisal or documentation will be necessary. Starting Feb 1st for at least a year this will go into effect. Hopefully more loosening will occur in lending as financing seems to be investors and primary residence buyers biggest challenge.

This entry was posted in Beginner's Advice, Financing. Bookmark the permalink.

8 Responses to FHA waiver of 90day seasoning, what it means to investors

  1. Jason Rush says:

    Ryan, thanks for the post and continuing to provide information that is pertinant to our industry and usefull info and details to the public.

  2. Ryan Moeller says:

    Thanks Jason, glad to help.

  3. Tim says:


    Is this now in effect? I am being told that the property isn’t “seasoned” and that this waiver doesn’t mean anything until the FHA issues a “mortgagee’s letter”…. Can you shed some light on this for me?

  4. Ryan Moeller says:

    Yes, it is in effect. There is more detail below. I don’t have the exact details on your mortgage, but I imagine by reading more you can find out what to do or if it qualifies for the seasoning waiver.

  5. Becky says:

    I have read your attached but I am getting the same information as Tim (Feb 9) that until a mortgagee letter is assigned the banks will not override this rule. I have 2 properties under contract right now in underwriting limbo waiting on this mortgagee letter. Any help/suggestions would be appreciated.

    Thanks, Becky

  6. Ryan Moeller says:


    This is new to underwriters and it may be a pain to get the mortgagee letter assigned. I would read more at the link below and ask everyone you know especially in banking and mortgage for advice on how to get the letter. Best of luck.

  7. Hotjoint says:

    I would appreciate more visual materials, to make your blog more attractive, but your writing style really compensates it. But there is always place for improvement

  8. ibelouis says:

    I really like when people are expressing their opinion and thought. So I like the way you are writing

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Contact Information