Yesterday, December 3, 2012 the Federal Housing Authority (FHA) announced a waiver extension on a crucial regulation to the Real Estate Industry that has an enormous impact on Tampa Real Estate Investors. The FHA has long had a rule that forbids the "flipping" or executing a new sales contract for a home with an FHA insured mortgage in 90 days or less. This means Tampa Investors must "season" the property for a minimum of 90 days, in order to sell to a qualified FHA Buyer.
However, back in January 2010 the rule was waived in an attempt to build home sales for the economy during the housing industry slowdown. The rule since then has been extended three additional times, and will now be waived until 2014! The rule applies to all single-family homes being resold after prior acquisition (flips). The waiver is subject to certain conditions and the mortgages must meet these conditions to be eligible for the 90 day rule waiver (for details on waiver requirements contact Sybil Johnston at American Equity Mortgage on Facebook
The FHA hopes that by waiving this rule it will entice Tampa Real Estate Investors that specialize in purchasing and renovating properties to continue doing so throughout 2013. If Tampa Investors upgrade the housing stock, FHA says, it will make more livable homes available for potential FHA Buyers. Being able to sell quality inventory to qualified FHA Buyers can have a positive impact on our local Tampa housing market, for sure!
For more FHA or other related news tune into your Tampa Real Estate Examiner
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