FHA anti-flipping waiver will expire December 2014
Home flippers are continuing to view
the current real estate market as a
Buying and selling opportunity.
Prior to 2010, FHA
Regulations prohibited insuring a mortgage
on a home owned by the seller for less
Than 90 days. The temporary waiver of this
Rule was first granted in 2010 to help improve conditions in communities experiencing high foreclosure rates. It was hoped that "flippers" could renovate and sell - previously left abandoned in order to accelerate the resale and repopulation of struggling neighborhoods, and this has turned out to be the case.
However, the continuation of the waiver will expire on December 31st
The Federal Housing Administration (FHA) announced that it will not
extend, this temporary waiver, what is commonly referred to as the “FHA
What does this mean for you and your clients?
If you are an investor or a property-rehabilitation specialist or
represent one, beginning Jan. 1, 2015, you will have to return to
pre-2010 operations in which properties may not be sold to a buyer
using FHA financing until after 90 days have elapsed after the
seller purchased the property. For more information see http://www.texasfivestarrealty.com/index.asp/FHA_Anti_Flipping_Waiver_Will_Expire_December_2014.asp
Contact Bahman Davani at: http://www.texasfivestarrealty.com/index.asp