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FHA extending waiver of ANTI-FLIPPING RULE| IN CASE YOU DIDN'T HEAR | Call you Orange County Specialist TODAY

By
Managing Real Estate Broker with California Coastal Estates DRE 01329427

FHA ANNOUNCEMENT:

For the second year in a row, the Federal Housing Administration is extending a temporary waiver of its "anti-flipping" rule, meaning homebuyers relying on FHA-insured financing will continue to be able to buy homes that have changed hands in the last 90 days.

The waiver is a boon for investors seeking to rehab and flip properties, because it expands the pool of eligible borrowers to include those relying on FHA-backed loans, popular with first-time homebuyers and others who lack the cash to make large down payments.

In extending the waiver through 2012, FHA said all transactions must continue to be arms-length. In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will apply only if the lender can document the justification for the increase in value, FHA said.

FHA instituted the anti-flipping rule in 2003 to protect its mutual mortgage insurance program from losses on homes that were merely flipped, rather than rehabbed. Homes repossessed by Fannie Mae, Freddie Mac, and state- and federally chartered financial institutions were exempt from the rule.

In February 2010, the Obama administration waived the waiting period for resales -- including homes purchased and rehabbed by private investors -- in the hopes of stabilizing home prices and revitalizing communities hit by foreclosures.

It often takes less than 90 days to acquire, rehabilitate and sell properties, the Department of Housing and Urban Development said at the time. Some sellers of rehabbed properties had been reluctant to enter into contracts with FHA buyers because of the cost of holding a property for 90 days, HUD said.

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NEED AN AREA SPECIALIST TO HELP YOU WITH A PURCHASE FOR A FLIP? FIND OUT ON INCENTIVES FOR INVESTORS THAT BUY AND SELL WITH CA COASTAL ESTATES, INC.- LAUREN SELINSKY 949-310-4960/ DIRECT

Posted by

   

  your real estate broker lauren selinsky 

  

 CA COASTAL ESTATES

 LAUREN SELINSKY BROKER | DRE01329427 

PO BOX 956 CORONA DEL MAR, CA 9262

c.949.395.6616 | t.626.514.0923

 ocLauren@me.com 

 


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Comments (6)

Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Lauren, this is definitely good news for the Buyers there. Happy New Year!

Jan 01, 2012 10:14 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

This is very good news for the flippers out there, that do a good job. Thank you for the post. Make 2012 the best year ever.

Jan 01, 2012 10:26 AM
Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Keller Williams Land Luxury Division Specialist

Sounds good to me.  Anyway to free up the excuses to loan again is a good thing.

Jan 01, 2012 02:43 PM
CA COASTAL ESTATES Lauren Selinsky Perez CRS
California Coastal Estates - Aliso Viejo, CA
"Your Real Estate Broker" #oclauren

Connie~ so true! We need to find the solution to get our homes filled with Buyers and great families who also may need to rent, but at least it's owned by someone and not sitting VACANT!

Jan 01, 2012 06:13 PM
CA COASTAL ESTATES Lauren Selinsky Perez CRS
California Coastal Estates - Aliso Viejo, CA
"Your Real Estate Broker" #oclauren

Yes guys! True! It's a good thing!

Jan 01, 2012 06:15 PM
Mike Grumbles
Gray Fox Realty - Franklin, TN
The Relocation Engineer in Franklin TN

Lauren, thanks for sharing this FHA update with AR and the world. This does allow for homes to get the needed repairs to become FHA eligible so a buyer can buy it once again. Better ready to sell than sitting vacant til a 203k client comes along. 

 

Not seeing very many cash buyers that are owner occupants these days but am working a couple right now in that scenario. 

 

Thanks again

 

Mike

Jan 02, 2012 12:09 PM