That being said, if this is the case, then your lender has not kept up with the guidelines. They may have other reasons for the denial, but if it's merely to comply with the 90 day possession guideline of the FHA, then you need to question further. In order to stabilize the housing market, the FHA temporarily waived this requirement back in 2010. The exemption from following the guidelines was set to expire in December 2011 which would have meant that the 90 day rule was re-instated.
But, the government extended the exemption again until December 2012 which means that the 90 day rule does not have to be followed. I would question your Lender or ask another Lender. Here is the link for the government extension of the exemption...
The other agent had many points right if this is an FHA loan... the one I would disagree with was them not being up to date. HUD did change the rules but MANY lenders kept what they call an "overlay" or a rule they make for themselves to help protect them...
So, yes it could very well be a underwriting issue based only on the length of time the seller has owned it... if that is the case they generally will not allow you to even be under contract until day 91...
Let me know if you want a referral to a great loan officer that is able to handle the loan without the 90 day rule... as a team we work with a LOT of buyers so we have found someone that we have partnered with that is able to better serve all our buyers and being able to do an FHA loan under 90 days is a huge issue for us.. Would love to help if you need it.
Hope this explanation helps some.
Best of Luck;
CEO & SR Credit Repair Specialist at
Everlasting Credit Repair
Ex-Mortgage Broker of more than 10 years