Does financing FHA have a limit on profit on a resently purchased foreclosure?

Question

i brought a home at a foreclosure sell in florida 3 months ago, i have a buyer now, what are the guide lines on how much profit i can make.

Answer 1

The last time I sat down and read the guidelines, this is what it said.

No FHA financing for 90 days. That means from the date of closing the purchase of the house, you cannot enter into a contract to sell it for 90 days if the buyer is FHA.

From 90 to 180 days, if the buyer is FHA, and you are selling the house for more than 200% of what you bought it for, then you'll need 2 different FHA appraisers to agree that it's worth it. They may also ask for proof of what you did to it to make it worth 200% of what you paid. FHA MAY ask for 2 appraisals even if you are not selling it for twice what you bought it for.

After 180 days, FHA MAY ask for two appraisals up to one year from your original purchase.

Keep in mind, these numbers are counted from the date you closed on the purchase, until the date of entering into a contract on the FHA sale. Also, if the buyer is buying with a conventional loan... none of this matters unless that particular lender wants to ask for something.

Oh, yeah, BTW - HUD's rules on this has nothing to do with who you bought the house from. It's NOT pertaining to HUD foreclosures. It has to do with HUD giving someone an FHA loan on a house that someone has only owned a short period of time and is inflating the price a bunch. Even if you bought it from a regular seller and not any kind of foreclosure.

Answer 2

If the buyers of your home are using FHA financing, there is no limit to your profit. However, if you are reselling a home within 6 months, they usually require 2 appraisals on it.

From FHA/HUD:

"any re-sale of a property may not occur 90 or fewer days from the last sale to be eligible for FHA financing and that for re-sales that occur between 91-180 days where the new sales price exceeds the previous slaes price by 100% or more, FHA will require additional documentation validating the propery's value. In addition, the rule provides flexibility for FHA to examine and require additional evidence of appraised value when properties are re-sold within 12 months.

Answer 3

There are none.

The only stipulation on an FHA REO -- and it only applies of you use FHA financing to buy it -- is that you must intent to occupy it as your principal residence. You can cover that by moving some of your property into the home once you close on it.

You may sell it at any time for whatever the market will bear. (But don't forget the capital gains tax bite!)

Answer 4

To my knowledge there are no limits on what you can sell it for, its whatever the market will bear.

FHA is out of the picture at this point. Keep in mind that the home will have to appraise if the buyer is getting a mortgage so make sure you base your contract price on sales comps.

Answer 5

I can't imagine how after selling you a foreclosed property, that they can somehow limit your profits afterwards. It's your property.

They had their chance to make whatever money they could with their auction. You took a substantial risk in buying the property, as all HUD foreclosures are purchased "as-is".

Sell it for every penny you can get.

Answer 6

I would recommend check FHA's website for profit limitations or contact a realtor that specializes in FHA sales. Another link which might help you is hud.gov
Good Luck!!!

Answer 7

i believe you may as long as there is not any deferred maintenance on the abode. FHA additionally has a rehab own loan if the abode desires some artwork. i might call your loan broking provider. they are able to respond to all your questions.

Answer 8

no limit. now you know the beauty of real estate.