Home Selling in 72712>Question Details

302sw10th, Both Buyer and Seller in Springdale, AR

We recently closed on a home with an FHA loan, but due to life changes we would like to sell. Is this okay?

Asked by 302sw10th, Springdale, AR Thu Jun 11, 2009

This question requires a bit of background information:

1. We purchased the home for $87,000 (the prior owner purchased the home for $80,000 as a foreclosure but decided the required work was too much and simply wanted to cover costs). The home appraised for $138,000.
2. We are currently housesitting and pay no rent. This arrangement began two years ago, and was originally going to end this summer (thus the motivation to buy a home) but things have changed. The agreement can be extended for another year, with the option to buy at the end.
3. The home we purchased requires about $20,000 in work, which we began last week.
4. Repairs will be done in two months, at which point we plan to sell, instead of moving in.
5. What else should we know?

Help the community by answering this question:

Answers

3
Check with your lender is the best advice here.
0 votes Thank Flag Link Sun Apr 29, 2012
Contact the mortgage company you used to buy this home, they should be able to clear this up for you. But from what I understand, because of the FHA flip rule, you will need to wait 90 days to sell your home to a buyer who is USING fha financing. And expect the buyer to have to have 2 appraisals done on the property if you sell within 6 months of your purchase of the property. If your area allows use of USDA financing that might be the best loan for a buyer because I don't believe USDA has a flip rule.
It sounds like from the facts that you stated that you've got a good investment.
0 votes Thank Flag Link Wed Jun 24, 2009
First, the key is when you closed on the FHA loan. Guidelines for flipping a house indicate that the buyer of the home has to hold it for 90 days from the time the deed was recorded before it can be sold and a new buyer can close a new FHA loan. If the house has been deeded to the buyer that closed at $80,000 for more than 90 days, then becoming a seller, you need to carefully read your loan documents to see if there is any hinderances to paying off the FHA loan. Typically you should be able to sell it by having a buyer that will use a conventional loan prior to the 90 day requirement from FHA. As to the housesitting buyer, unless you have a written option to buy or a written agreement, that spells out terms, the seller can cancel or you can cancel. However, you should consult an attorney as there are circumstances unknown to give a specific answer to this question, my answer is generall in nature as a Realtor but this question may require legal advice.
0 votes Thank Flag Link Wed Jun 24, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer