FHA's Holiday Gift to Investors and Home Buyers

FHA's Holiday Gift to Investors and Home Buyers

In an effort to stabilize home values, the FHA announced the extension their anti-flipping regulations until December 31, 2012 in FHA press release No. 11-292.  This is great news for legitimate investors and home buyers.  Normally the FHA prohibits insuring a mortgage on a home owned by a seller for less than 90 days, but waived this regulation under certain circumstances back in 2010 through the end of 2011.

Investors who rehab homes quickly benefit, because buyers can qualify for FHA loans to purchase these properties.  Home buyers benefit because it allows financing for HUD-owned or other government owned properties, bank-owned properties and properties resold privately.  Lenders and Real Estate Agents benefit because they will be able to help more people buy affordable homes.

At Embrace we are able to and have helped borrowers with credit scores as low as to 540 purchase homes with FHA loans.  We also provide financing for investors for up to ten (10) financed properties per Fannie Mae guidelines.  Most lenders still have overlays allowing investors only four financed properties.