Great News for Delaware Investors and Buyers
Here's some great news for Delaware Investors and Buyers in todays marketplace! As many investors are aware, FHA will not insure (finance) any property that has already been purchased in the past 90 days. This has prevented investors from buying destressed homes and doing quick rehabs and selling them at a qucik turnaround for profit. This is known as "flipping" properties. HUD has temporarily relaxed this rule starting in February so this can really be a win-win for investors as well as buyers. Buyers don't have to worry about paying to much for the property as appraisals are much more scrutinizing!
They make it look so easy on TV. Buy a yucky house. Make it pretty. Sell it. For some, flipping houses can be easy. Especially those with talent and the resources to get the job done quickly.
But, with so many buyers obtaining FHA financing in recent years, it became possible that a flipper could get the job done too fast.
Last year, a client of mine purchased and rehabbed a house in less than thirty days. It was beautiful and it caught the attention of many buyers. However, we could not sell the house. You see, according to HUD (Department of Housing and Urban Development) regulations a buyer could not purchase a "flipped" house using a FHA mortgage until the house had been seasoned (owned by the seller) for at least 90 days.
Once the seller had owned the house for 90 days and the property qualifed for FHA financing, it quickly sold.
The seasoning rule will be changing in 2010. On Friday, HUD announced that beginning in February this rule will be relaxed for one year to help stimulate home purchases. You can read the press release here.
This change will benefit both a seller's ability to sell a house quickly and increase the number of homes a buyer can choose from. If you are interested in purchasing a rehabbed property or maybe you are going to try your hands at real estate flipping, give me a call at CENTURY 21 Goodyear Green today, 405-359-7400.
About the author: Kristyn Grewell, GRI ABR e-PRO, is a REALTOR with CENTURY 21 Goodyear Green in Edmond, Oklahoma. She helps her clients buy and sell homes and investment properties in Oklahoma specializing in Edmond, NW Oklahoma City, Guthrie, Mustang, Yukon and the surrounding areas. Kristyn is also an Oklahoma relocation specialist. As a member of the Cartus Broker Network she can connect you (or your friends and family) with a qualified real estate specialist virtually anywhere!
For more information, visit SellaMetroHome.com or e-mail kristyn.grewell@century21.com. For faster service, you can always text or call Kristyn at 405-615-2796.
Please note that individual listings periodically mentioned in this blog are accurately described in terms of availability and price at the time of the posting. Because properties are constantly coming on and off the market, please contact Kristyn for the latest information on those that are of particular interest to you.
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