Apparently today the FHA has suspended the 90-day anti-flipping rule for 1 year, effective February 1, 2010. So for at least the next dozen months, FHA buyers can obtain loans on properties that have been recently purchased by investors.
This is great news for investors trying to flip properties to FHA Buyers! For the next year at least, you wont’ have to sit on your laurels waiting for 90 days on title before you can even GO TO CONTRACT with a buyer.
- Here’s the first article I read about it: “HOUSING: Feds suspend anti-flipping rule”
- And here’s the actual PDF from HUD that makes it official and takes you through the grueling details…if you like that sort of thing.
So with this, maybe the FHA just got a little less sucky. For now. And just a little.
Apparently there are a few details to be aware of, such as if the resale is 20% higher than the investor’s purchase, you’ll have to pony up some proof to an independent appraiser that renovations and repairs justify the higher price. But that’s just good standard practice to have handy as a flipper these days anyway.
UPDATE: After reading carefully through the 3 page waiver myself, I put together an Executive Summary of “must knows” every investor should be aware of…
So tell me…how do you expect this will effect your own real estate dealmaking for 2010?