flips: FHA Extends Flip Rule - 02/09/11 04:44 AM
Looks like FHA is going to play nice and wave the 90 day flip rule again for 2011.
Below are general guidelines that HUD uses to identify properties that are exempt from the 90 day rule. As I mentioned, some banks have adopted this criteria as well. Others may not be willing to loan, period.
1-All transaction must be an arms-length loan with no identity of interest between the buyer and seller or other parties involved.
2-The property cannot have a pattern of previous flipping in the past 12 months (One previous flip a year people!)
3-If the seller is earning … (1 comments)

flips: 90 Day Flip Rule STILL Haunting Buyers! - 08/18/10 05:16 AM

I thought we had worked this one out! On Feb 1st of this year FHA agreed to temporarily allow funding on homes that were acquired by the current owner (bank/investor/seller) in less than 90 days IF the property met certain criteria.
Now I hear some banks are still enforcing the 90 day flip rule-even for non-FHA loans!
Why was this rule created in the first place?
HUD recognized a few years ago that a minority of flippers (someone who purchases properties, then immediately sells for profit) were in cahoots with loan officers and appraisers and took advantage of innocent buyers … (2 comments)