FHA May Require a Home Inspection on Flipped houses

FHA May Require a Home Inspection on Flipped houses

You read that right.

Its all over the web that the FHA has waived the 90 rule they recently implemented, however when they made the waiver, they threw in a few items to make sure they didn’t finance a big pile of rubble.

One of those provisions is that if the home sells for 20% more than the seller paid for it, THE LENDER HAS TO ORDER A HOME INSPECTION. Now the lender can charge the borrower for the inspection but that does not change the lender is the one the home inspector is hired by.

Don’t take my word for it, go to HUD’s website and see for your self.

http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

This could open a big can of worms, now an agent may have to disclose that the seller just purchased the home and what it was purchased for. Was it less than 90 days ago? if so you want to be familiar with the document on the HUD site.

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