FHA Agrees on Home Flip Waiver, Which is Great For Real Estate Investors in Chicago's Northwest Suburbs (Palatine, Schaumburg, Barrington, Long Grove, Lake Zurich, Hawthorn Woods, Mundelein, Libertyville, Wauconda, Vernon Hills, Island Lake etc.) and Entire Chicagoland Area
For the second year in a row, FHA is extending a temporary waiver of its "anti-flipping" rule.
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 great for investors seeking to rehab and flip properties, because it expands the pool of eligible borrowers to include those relying on FHA-backed loans.
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 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. 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.
If you are an investor thinking about purchasing investment property in Chicago's Northwest Suburbs (Palatine, Schaumburg, Barrington, Long Grove, Lake Zurich, Hawthorn Woods, Mundelein, Libertyville, Wauconda, Vernon Hills, Island Lake etc.) or other areas (including downtown or western suburbs) we’ll be happy to discuss working with you.
Investors utilize our services because we have more negotiation expertise and experience than any company in the Chicago area. Our application of “competitive intelligence” to the negotiation process (a specialized expertise) is something that no other agent / company in the Chicago area offers.
If you are serious about purchasing investment property in the Chicago area within the next 90 days - feel free to contact us. As an Exclusive Buyer Agent / Broker (always on the investor's side - never on the seller's side) we work with a select number of clients - so that we can provide the highest possible level of service. Our personalized research and attention pays off for you - the real estate investor.
You can use our map based investment property search by clicking here.
You can download our GPS-enabled investment property search application onto your cell phone by texting BBC to 87778.
Call 847-566-7558 or e-mail to schedule a no cost initial consultation – to determine if we would be a good fit.
Comments(2)