Financing and Credit

On Friday of last week, The U.S. Department of Housing and Urban Development has temporarily suspended a ban on using FHA loans to purchase homes that have been held for less than 90 days. This is big news for investors, who were often discouraged from bidding on property by the anti-flip rule, becasue a majority of their buyers would need FHA financing to qualify for the property purchase. I have attached the waiver below. Please take close notice of the caution concerning “assignment of contract” in section 1.d. And then read carefully all of section 2 regarding properties that are sold for 20% more than the investor’s purchase price.

Hope this helps!!!

I am currently working on a deal on a duplex thats listed at 65K. Depending on where I look its valued at somewhere between 80K-125K. I dont think it will be a problem getting this property using my current equity line but my question is about refinancing. Can I refi right after closing? What are the advantages? I see where everyone is doing it right away but I am just not understanding how it all works..thanks in advance for any help!!!!

Jan here from the team of Jan and Jeremy. This is an alert for all of our DG family.
I have noticed a bunch of posts from private lenders offering financing to our family members on our site. BE VERY CAREFUL FRIENDS,

Hello my fellow DG followers..

Starting 2-1-10 the 90 day title seasoning for FHA loans will be put on hold for one year.This will help more people qualify for loans as investors try selling or flipping properties. Hear is a link to the information and you can read about it your self.
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

I had the good fortune to attend my first local REIA meeting last week. The guest speaker was the first president of the organization from back in 1980 something. Some of you may have heard of him, if not you should make a point to look him up. His name is Ron LeGrand and he has mad a fortune in REI.

It appears there is a new regulation which is preventing some lenders from financing loans under $20K. I have decided to buy the property for $17.8 with transactional funding cash under my company then sell it to myself at the minimum finance limit so that I can finance the property. Is that okay?

I would like to buy my first home but have no money. Is it possible to find a property, make an offer to pay cash so that I can get a discount using a back end funder. Then I would create a note and then sell it for cash. Is this possible?

I have a situation which is keeping me from fulfiling my dream in real estate. In February of 2009, I made a foolish mistsake and bought a home with my then fiance. We also purchased a truck shortly there after. soon after we bought the house, things started deteoriating rapidly. Well we broke up in July and I left her with the house and took the truck. I was assured by her that she would have the house refinanced within a month with her parents help. Well they did not trust that she would make right decisions so they did not help her leaving me in a bind.

How do people start this business with no money and no credit?