Jason,
The FHA does not do title insurance. It insures the lender on an FHA backed loan. There are alot of financing options other than an FHA loan any mortgage broker can find a different loan program.
In the past properties were sold numerous time within a 6 month period and each time the sales price was greatly increased. This led to croupt appraisals and loan fraud in some cases. The feds tried to stop their losses by changing the rules on FHA backed loans.
This is a minor issue so don’t get all worked up about it
Posted by Jason Russo on May 17, 2006 at 20:32:56:
Is there any way around the new FHA anti-flipping regulations? Do these laws apply to rehabs or just straight flips? Is there any other way to get title insurance without going through the FHA? Does this only apply to FHA loans? I am referring to the 90 day period that is required to hold a property’s title to get FHA title insurance?
You are confusing mortgage insurance with title insurance. Not even close to the same thing. FHA morgtage insurance is almost the same as Private Mortgage Insurance, or PMI. They cover the top 20% of equity in a property if it goes into foreclosure (it’s more complex than that, so nobody hammer me).
Title insurance insures marketable title and disputes as to ownership, equitable interest, etc. FHA does not do title insurance.