FHA Regulations

[kbrugnani]

What is the name of your state (only U.S. law)? New Hampshire

My soon to be ex-wife and I just purchased a house under a FHA loan (US Bank lien holder) back in February and she claims we cannot sell the house until February 2009 which would be one year from date of purchase.

Now I seem to think that is only the case if you are trying to do a flip, I cannot seem to find anything on the net about the regulations. After all it is going to be a divorce so I cannot see how the regulation would apply as if we bought it to flip it.

What I really think it is, is because she has nowhere to go and does not want to give it up.


Some good advice will be greatly appreciated. I know get an attorney, I hope there are some good pro-bono in my area as my funds are very limited.

 

[HUD-1]

There are no recorded restrictions that last for one year on an FHA loan. The requirement of an FHA loan is that you are an owner occupant. It therefore all boils down to what your intentions were when you bought the house. If you wanted to flip or develop a portfolio of rental properties, then you have a problem. (Especially if you never moved into the home.) If you moved in after closing in good faith and then %$#@ happened 5 months later, that is life and you are able to sell or rent the property.

 

[dmiller12]

The anti-flipping laws are designed to protect home buyers from purchasing properties far above the value the home was purchased at originally - if the property was bought, then sold within 90 days.

There are certain types of loans that require you to occupy a residence for a specific period of time in order to to have the repayment of assistance either waived or reduced.

For example, in my state certain eligibale 1st-time hombeuyers can obtain down payment assistance up to $14,999.00. If the homeowner occupies the home for 5 years, the repayment of the assistance is reduced by 30%. They can still sell prior to 5 years but they'd have to payback the full amount of the assitance.

Other than a situation like this, there should no reason you are unable to sell the home prior to 1 year - particularly if you are not planning on trying to sell it for substantially more then you bought it for.