90 Day FHA Anti-Flipping Rule Waived For The Next Year!

Hold onto your hats investors!!   As of September 14, 2009, FHA has ruled to WAIVE (the very well known achilles heel of the Real Estate Investor) the 90 DAY ANTI-FLIPPING RULE FOR THE NEXT YEAR!

OK! OK! It I know what you are thinking.. "Yeah right Ted!!" 

There are some stipulations of course!! You didn’t think you were going to be given your cake without using a very specific fork to dig in, did you?

The stips are not that bad, however you need to find a lender that participates and most importantly knows how to work an NSP (Neighborhood Stabilization Program) Loan.   They are known by many different names depending what part of the country you live in. Us here in Arizona have the NSP Program which is administered within the municipalities and then we have YOUR WAY HOME AZ which is administered on the State level. 

The program is designed to provide borrowers up to 20-22% down payment assistance which helps them to do any or all of the following:

• Down Payment (although they still have to come in with 3% of their own funds)
• Buy down the rate (lower the rate and payment)
• Minor Repairs or replacement of stove, refrigerator, etc.. (NO THIS IS NOT A 203K)
• Pay for closing costs

For more technical information you can go find it on the links below:

Section 203.37a(b)(2) of the FHA regulations, 24 CFR, is hereby waived for a period of one year, September 14, 2009 through September 13, 2010, with regard to sales of previously foreclosed or abandoned properties acquired and resold by for-profit and non-profit entities using funding from and performing under agreements with state and local government agencies under the NSP program. Read the Waiver online at: http://www.hud.gov/offices/hsg/sfh/hsgsingle.cfm

If you have questions of FHA's Property Flipping Waiver please email FHA at: info@fhaoutreach.com or visit: http://www.fhaoutreach.gov/FHAFAQ