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FHA FLIP RULE WAIVED--HUD Waives the 90 day Flip Rule for 1 Year with Conditions

By
Real Estate Agent with HomeSmart Encore - Las Vegas S.65708

FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days.

HUD Secretary Shaun Donovan announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure.

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner, but there are some conditions, here are a few:

  • All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
  • In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
  • In Las Vegas this may open up some homes for buyers to put offers in on, but since our inventory is low right now, there will still be a lot of competion for these homes.  Buyers still need to be prepared to put in their best offer on their first offer as they will still be competing with a lot of cash and conventional buyers.

    Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD's website

    Click below to read the News from HUD and see all the details.

    FHA FLIP RULE WAIVED--HUD Waives the 90 day Flip Rule for 1 Year with Conditions

     

    Buying or Sellin in Las Vegas, North Las Vegas,Centennial Hills, Alianta, Henderson, Green Valley 

     Give me a call Dawn Barrier (702) 812-4550

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    Dawn Barrier
    Century 21 Aadvantage Gold
    2 offices to serve your needs - 1 in the Green Valley Area and 1 in the North
    Las Vegas, Nv
    (702) 812-4550

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    Dawn Barrier at HOMESMART ENCORE Las Vegas, Nevada

    s.65708  

     

    (702) 812-4550 

    Las Vegas, Nevada   

     
     

     

     

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    All information is provided for entertainment, informational purposes only and is Not legal advice, consult an attorney or financial expert for legal advice. This is general information and is not intended to provide advice on any specific question or transaction. Parties to any real estate transaction should seek competent legal and/or tax counsel to determine the legal, credit and tax consequences of buying or selling a home.  The opinions expressed here represent my own & not those of my employer.  Dawn Barrier will not be liable for any errors, ommissions, accuracy, validity, currentness, suitability, completeness or any losses, injuries or damages arising from its display or use. Listing your home for sale and attempting to do a Las Vegas Short Sale is a possible solution to avoiding foreclosure but not a guarantee that your lender won't foreclose or pursue other means of collecting the unpaid debt between what you owe and what the home may sell for.  Copyright © 2020-2008 Dawn Barrier. All Rights Reserved. Any Stats are per the Las Vegas area MLS or public records as of this writing or as noted.

     

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    HOMESMART ENCORE Las Vegas Dawn Barrier

    (702) 812-4550

    s.65708

    Comments (2)

    Craig Richardson
    National Realty - McLean, VA

    Dawn, this is good news I think.  Many listings I've seen recently specifically say no FHA financing because of this provision.

    Jan 18, 2010 05:50 AM
    Dawn Barrier Las Vegas Real Estate
    HomeSmart Encore - Las Vegas - Las Vegas, NV
    Homes in Las Vegas Nevada 702-812-4550

    Yes, that is in a lot I see as well, and they most likely won't remove it on some of them due to the 20% guideline above.

    Jan 18, 2010 06:29 AM