HUD Suspends 90-day Flipping Rule for FHA Borrowers
In continued governments efforts to bolster the housing market, the U.S. Department of Housing and Urban Development suspended the rule that prevents “flipping” of properties for 90 days. Current FHA guidelines prevent borrowers from obtaining mortgages on a home owned by a seller for less than 90 days.
The policy change will enable vacant properties to be sold and occupied much quicker, reducing vacancies and helping to stabilize neighborhoods where vacant, foreclosed homes sit. Buyers will now be able to use FHA financing to purchase bank owned, HUD owned and private resells, expanding the pool of homes available to FHA buyers. The move also has a significant benefit for investors purchasing and reselling bank owned properties.
The waiver takes place on February 1 and will remain in effect for one year. FHA insured financing is available for home buyers with a loan amount less than $729,750 in Marin County.
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KristenEmery
Ginger, Timely information. Wanted to mention two important details in this waiver to watch out for:
1) The transaction must be completely arms length, with no identity of interest between Buyers, Sellers or other parties associated with transaction. 2)The sales price cannot be greater than 20% of the seller's acquisition cost. -
Ginger, Timely information. Wanted to mention two important details in this waiver to watch out for:
1) The transaction must be completely arms length, with no identity of interest between Buyers, Sellers or other parties associated with transaction. 2)The sales price cannot be greater than 20% of the seller's acquisition cost.
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