Historically speaking (double entendre intended), when an investor purchases a home (cash or financed) they are not permitted to re-sell that home within 90 days, known as the "FHA Anti-Flipping Rule." As a Realtor it concerns me greatly because while it is intended to protect consumers it is actually an anti-consumer problem in that it encourages hard money lending and non-insured loans.
Last December I blogged the FHA Anti-Flipping rule after reading an Inman News article announcing the Obama waiver extension. Ken Harney, with Inman News & Washington Post discovered it, FHA Extends Temporary Waiver of Anti-Flipping Rule: Investors Still Strong in San Antonio, Texas, introduced below.
"Inman news reported December 2011 that the "Federal Housing Administration is extending a temporary waiver of its "anti-flipping" rule, meaning home buyers relying on FHA-insured financing will continue to be able to buy homes that have changed hands in the last 90 days." which is a continuation of the 2011 ruling by the Obama administration to approve the waived the waiting period."
Ken called me a few weeks ago to request an interview for an update article (the rule was extended to 2014) he was researching. Ken and I chatted about why I wrote the blog, the 2014 extension, and how the rule impacts my market.
I spoke primarily on the impact of ICRIP (Inner City Revitalization Infill Project) and CRAG (the original 36 square miles of the city) because there are some interesting homes circa 1920's-1960's that are quite dilapidated, but well worth saving. After-all, some have views of the Hemisphere Tower and are within walking distance to the Alamo. Others boast beautiful verandas, stair cases, stained glass windows, and gingerbread architecture. One of my favorite up and coming communities that is the Lavaca District, which is walking distance to local artisans and fine dining like Azuca's Nuevo Latino Cuisine on a moderate budget.
My contribution:
"Cathy Bureau, broker-owner of Green Home Realty in San Antonio, Texas, who specializes in the central areas of the city, says FHA's two-year extension assures investors that there will be takeout financing for buyers, thereby cutting costs on the "hard money" line of credit financing they use to acquire their houses. At interest rates of 14 to 16 percent, "every day costs money," she said, so for investors the ability to sell quickly after completing repairs is crucial."
The good news for investors and buyers alike, is that the continued flipping occurring within the ICRIP area and CRAG area may continue into 2014.
If you'd like to invest in that area and want an expert opinion then contact me to schedule an appointment.
My website offers community information on San Antonio Historic Districts.
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