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Brick Foundation OK for FHA; 2 Year BK Seasoning for FHA; 4 Years Seasoning for Short Pay-Off

The Fed’s Comments yesterday were not as “momentous” as investors had hoped, but rates did improve marginally. Warren Buffett made comments yesterday implying that we have a long way to go before the economy starts to grow again. Such comments from our most famous investor do not bode well for the economy overall, but they do wonders for interest rates.

We had several common FHA Questions arise yesterday. Question number one has to do with whether or not brick foundations are allowable for FHA transactions. The answer is “yes”, as long the foundation is in “good condition” per the inspectors or the appraiser, and as long as such foundations are “typical for the area”, per the appraiser. Our question arose for a Victorian in Alameda where such foundations are common enough to make them not an issue.

Another question has to do with the seasoning period for a bankruptcy. The FHA required seasoning is TWO YEARS from the date of discharge.

The third question has to do with a Short Sale or a Short Pay Refinancing: FHA has a FOUR YEAR seasoning requirement from the date of a short pay-off, much harsher than the bankruptcy seasoning requirement.

Call Jay Voorhees at (925) 855-4491

Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646