For one year ONLY-FHA Rules regarding the 90 day waiting period hae been lifted!

Problem:  FHA wouldn't finance a home if it had been bought and sold withing 90 days.  This discouraged rehabbers from buying into areas that might have been more conducive to FHA mortgage financing.  Areas that would have been prime candidates for rehab were sometimes neglected.  Property inventory would increase as investors chose to move to other areas or waited out the 90 days.  During this waiting period the properties and areas could fall into dis-repair. REO properties are now more appealing to investors.

Solution:  Using conventional financing was the solution in the PAST.  Since March of 2008, with the new rules in conventional financing and declining market limitations FHA is becoming that loan of choice.  Remember that FHA allow for lower down payment-2.25% and FHA loans allow for Down Payment Assistance from a qualified DPA provider. The low down payment and opportunity to use qualified gift funds makes mortgage financing possible for many people-first time buyers and otherwise.

Net result:  Lenders and investors are now incentivized to rehab property quickly. This should stabilize neighborhoods as FHA financing will now be an option for buyers!

Visit http://www.selling.mn to begin to search for next home in Minnesota.  Mortgage broker-Venture Development provides more information about FHA and an FHA video information-  http://www.ventureloanapp.com