Contractor's Corner

HUD Announces Changes to the 90-Day Flipping Rule for FHA

The Federal Housing Administration (FHA) has announced a temporary waiver of it’s ‘90 day seasoning required for sellers rule’ for FHA insured properties effective February 1, 2010. 

So what does that mean? 

As many people know, when an investor purchases a property there has been a rule that prohibits that individual from selling (flipping) that property for 90 days.  In today’s market, properties can often be rehabilitated in less than 90 days, but the investor had to assume the carrying costs for 3 months before they could put it back on the market.  This is great news for the investors, but also for all buyers…particularly in the entry level, as it could make these homes more affordable.  This could go a long way to help help homebuyers find affordable housing and stabilizing neighborhoods.  

Here are the important facts that you need to know:

• The new purchase price for the home cannot exceed 20% of the aquistition price the investor paid for the home.  If the sale price IS 20% or more of that purchase cost, the lender must: (A) provide supporting documentation to support the improvements and/or a second appraisal and (B) order an inspection of the property and provide it to the buyer.
• It must be an arms-length transaction.  That means there can be no relationship or interest between the seller, buyer, or other parties to the transaction.  (It also means that realtors cannot sell their own listings)
• Waiver takes effect February 1, 2010 for a period of one year unless extended.

To read the specific details, go to:  http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

If you are interested in investment property or home flipping, feel free to give me a call at 714-552-0274.  I have had my contractor’s license for 15 years and am experienced in finding homes that are great opportunities…whether you are an experienced investor, contractor, or just getting started.

Newport Beach Dream Home Nears Completion

Contractors Corner

I’ve been watching the new construction project on the corner of El Modena & Clay in Newport Heights as it has been undergoing a ground-up transformation for the last nine months.  General contractor Ross Savage with KRS Development was kind enough to give me a tour and fill me in on the particulars.

This brand new luxury home in Newport Beach is approximately 4000 square feet, 4 Bedrooms, 5 Baths and features modern traditional architecture, lots of light, and a terrific floor plan ideally placed on a corner lot.

• Formal living room
• Formal dining room
• 4 Fireplaces
• Amazing gourmet Chef’s dream kitchen with butler’s pantry
• Round breakfast room with two stories of windows
• Spacious family room
• Downstairs laundry / mud room
• Over-sized 3 car garage with storage
• Elegant and spacious Master Suite
• Upstairs “TV” room
• Upstairs laundry room
• Gorgeous reclaimed barn wood floor throughtout most of the home, with brick accents in the floors and fireplaces.

The architect on the project was Ross’s Dad, and the lady of the house is an interior designer and they all worked closely to get the details perfect.  This home is just a few weeks away from completion and it truly is the owner’s Newport Beach Dream Home.

For more information about new luxury homes and remodeled homes in coastal Orange County,  contact Terry Crisler.  To contact the builder of this elegant Newport Beach Dream Home:

KRS Development Services

(714) 432-1170

Ross Savage / General Contractor

Remodeling a Kitchen Before a Sale

There’s no question that a fabulous kitchen will help sell a property in record time. It’s something that every buyer admires even if they don’t cook! It’s not something most sellers think of but it’s really a great question for your Real Estate professional. The reason is that your agent can you understand where your home fits in the current market compared to comps in your neighborhood. This information can allow you to decide between a light remodel or one to make your family and friends drool on sight!