Mortgage guidelines are changing every day, it seems. The process of getting a home mortgage is not quite as easy as it has been in the past, but by following a few simple guidelines, the process can be simplified. The FHA mortgage process, in particular has a few “gotcha’s” that can easily be avoided, but if proper care is not taken, a home may not be eligible for a FHA mortgage for months.
As we all know, FHA case numbers are property specific. These case numbers last for 180 days. FHA guidelines do not permit the FHA to insure a home that has transferred ownership within the past 90 days (selling a foreclosure for HUD is the exception). Before you show your FHA buyer a home, it is imperative that you check the property profile to determine whether the property has changed hands within the past 90 days. If the property has, the contract must be written for a long enough period of time that the lender can order the case number after the 90-day waiting period has elapsed.
If the case number (and appraisal) are ordered prior to that 90 day window closing, the property will not be eligible for a FHA mortgage. In fact, the property will have to hold onto that case number for 180 days, and will be excluded from FHA financing for that entire time.
An astute loan officer will pick that up prior to opening the case, but do your homework before picking a property. There is no need to get excited over what you (or your buyer) cannot purchase. For more information, please feel free to call me at 281-841-1723.