As of 01/16/2010
90 Day Flip Rule has been waived for 1 year!
FHA 90 Day Flip Rule Is Waived for 1 Year
HUD has ruled on waiving the 90 day seasoning financing contingency for buyers. What does this mean?
Effective February 1st 2010, FHA/ HUD will not require that a seller of a property be on title for 90 days or more in order to sell the property to a borrower acquiring FHA financing. This is an incredible opportunity for the majority of buyers & sellers in today's market.
Investment Properties, Flips, Foreclosures, Short Sales
This news is an important decision handed down by HUD as it propsed to dramatically assist the real estate market recovery. (READ MORE)
UPDATE as of 9/23/09:
OK!! Here is the skinny on this topic. There has been way to much attention focused on the idea that the 90 Day Flip has been waived. After hours of tracking people down (afterall it is government) I just got off the phone directly with NSP. The memo that was released by HUD means this:
Any Non-Profit or For Profit entity that has applied and have been approved and use NSP-2 Funds for stabilization, rehabilitation of REO properties are exempt from the 90 Day Anti-Flip Rule. This has nothing to do with NSP Funding on the consumer level.
However, all NSP-2 Funds restrict the investor/ seller from a profit. The program is designed for the sole purpose of stabilizing the community. So in the end, there isn't any reprieve for investors.
IN SHORT: THE 90 DAY ANTI-FLIPPING RULE STILL STANDS
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9/22/09: Hold onto your hats investors!! As of September 14, 2009, FHA has ruled to WAIVE (the very well known achilles heel of the Real Estate Investor) the 90 DAY ANTI-FLIPPING RULE FOR THE NEXT YEAR!
OK! OK! It I know what you are thinking.. "Yeah right Ted!!"
There are some stipulations of course!! You didn’t think you were going to be given your cake without using a very specific fork to dig in, did you?
There are some stipulations of course!! You didn’t think you were going to be given your cake without using a very specific fork to dig in, did you?
The stips are not that bad, however you need to find a lender that participates and most importantly knows how to work an NSP (Neighborhood Stabilization Program) Loan. They are known by many different names depending what part of the country you live in. Us here in Arizona have the NSP Program which is administered within the municipalities and then we have YOUR WAY HOME AZ which is administered on the State level.
The program is designed to provide borrowers up to 20-22% down payment assistance which helps them to do any or all of the following:
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Down Payment (although they still have to come in with 3% of
their own funds) -
Buy down the rate (lower the rate and payment)
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Minor Repairs or replacement of stove, refrigerator, etc.. (NO THIS IS NOT A 203K)
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Pay for closing costs
For more technical information you can go find it on the links below:
Section 203.37a(b)(2) of the FHA regulations, 24 CFR, is hereby waived for a period of one year, September 14, 2009 through September 13, 2010, with regard to sales of previously foreclosed or abandoned properties acquired and resold by for-profit and non-profit entities using funding from and performing under agreements with state and local government agencies under the NSP program. Read the Waiver online at: http://www.hud.gov/offices/hsg/sfh/hsgsingle.cfm
If you have questions of FHA's Property Flipping Waiver please email FHA at: info@fhaoutreach.com or visit: http://www.fhaoutreach.gov/FHAFAQ
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