FHA Waives 90 Day Flipping Rule
by Tyler on 01/18/10
HUD Secretary Shaun Donovan announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. In an effort to speed the resale of foreclosed properties to new owners, HUD has decided to waive the 90 day flipping rule. They are hoping that this will bring stability to home values and accelerate the sale of vacant properties. With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
This is great news for first-time home buyers and especially for investors. The turn around time will for monthly holding expenses will decrease dramatically. However, it will still be difficult for those buyers to beat out the cash investors. Don’t lose hope first-time home buyers. If you select the right Realtor®(Tyler[at]PortfolioRS[dot]com), they will go out of their way creatively to get you the home you want. You can read more from the FHA website.
