The anti-flip rule basically says that when a new buyer, an FHA buyer, someone receiving any FHA loan, is looking to buy a property, that property has to have a 90-day title license. This means that the seller has owned the property for 90 days. The FHA change rule works by restricting FHA financing on a home if it has been sold in the past 90 days. There are some exceptions to the FHA change of ownership rule because the FHA understands that not all changes of ownership are fraudulent.
Technically speaking, there are no regulations stating that only the 'X' number of houses can be changed per year. With this rule, the FHA lender must hire an FHA appraiser to analyze the history of homeownership. Fannie Mae expects professional appraisers to fully understand that discriminatory valuation and appraisal reporting practices are not only illegal, but also unethical. In addition, Fannie Mae is at all times in possession of and holder of the mortgage note, except in the limited circumstances expressly described below.
In a nutshell, this rule states that homeowners who want to purchase an invested property can only proceed after 90 days have passed. I just sold my last flip and, even though it was out of 90 days and the buyer was receiving a conventional loan, it still required 2d evaluation and one requirement after another. Legitimate changes of ownership are acceptable transactions in relation to loans purchased by Freddie Mac. Fannie Mae and Freddie Mac are government-sponsored companies (GSE), whose sole purpose is to provide affordable loans and liquidity to the mortgage market.
Fannie Mae requires the lender to obtain a complete, signed appraisal report that accurately reflects the market value, condition and marketability of the property. Freddie Mac and Fannie Mae said they would offer leases to homeowners who would lose their homes due to foreclosure. Fannie Mae is at all times the owner of the mortgage note, whether the note is in Fannie Mae's portfolio as a trustee, for example, as a trustee of an MBS trust.
