Great news for first time home buyers hoping to buy a turn key home with an FHA loan. The FHA has extended their suspension of the 90- day anti-flipping rule until the end of January 2012. The anti-flipping rule was enacted to protect home buyers from buying properties bought by investors at below market prices and then quickly flipped for high profits.
Prior to the suspension of this rule investors would have to wait until day 91 before accepting an offer from an FHA borrower. FHA representatives stated that they haven't found the kind of fraud and defaults associated with flipped properties that they had in earlier years.
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