Recently I sent out a distribution email regarding the U.S. Department of HUD’s program that will speed the resale of foreclosed properties by expanding homebuyer access to FHA insured mortgages by waiving the requirement of prohibiting the insuring of a mortgage loan on a home owned by the seller for less than 90 days.

I received numerous responses from some of you stating that this was all good, however, there was a cap that the resale amount could not exceed 20% over the previous purchase price.

Therefore, I wish to provide for any of you that were concerned in this regard, a copy of the actual Waiver of Requirements of 24 CFR 203.37.a(b)(2) (CLICK HERE), for your records and review. Please note that within these guidelines, specifically, Section 2, it states that “in cases where the sales price of the property is 20 percent or more over and above the seller’s acquisition cost, the waiver will only apply if the lender…” and it goes on to outline the requirements that the lender needs to comply with to get the FHA loan approved for a new buyer when the new sales price exceeds the 20% increase.

So, an FHA loan for a new homebuyer can be obtained in such a case for those of you who felt otherwise but the lender just must comply with the certain requirements outlined.

Best of success to each of you in our industry.

Elizabeth Newell-Williams, President
Williams Title Guaranty and Escrow Agency, Ltd.
650 South Cherry Street, Suite 115
Denver, Colorado 80246
303-755-3765 ext 603
www.williamstitle.com