FHA Waives 90 Day Flip Rule

GREAT NEWS!! FHA Federal Housing Commissioner David H. Stevens waived the 90 day flip rule for 1 year.
This is GREAT news for Investors and Buyers.
Previously if an investor purchased a property, a buyer with a FHA loan was not allowed to purchase the property until the 91 day. This rule was always a burden for the typical First Time Home Buyer because they were not allowed the opportunity to purchase the property within the first 90 days.
With Inventory so low and a large pool of buyers and everyone bidding on the few properties that are available it didn't seem like the FHA buyers had a fair shake at purchasing properties. Investors also suffered by having to sit on properties for the 90 days which increased their holding costs and also hindered the investor on purchasing other properties to fix up and resale as a result.
This waiver will help many home buyers find affordable housing and contribute to the stabilization of neighborhoods hit hard by foreclosures.
The waiver, which takes effect Feb1, 2010 is limited to the following conditions:

1. All transactions must be at arms-length, with no identity of interest between buyer and seller or other parties participating in the sale.
2. Certain conditions are required if the sales price is 20% or more above the seller's acquisition cost. (see details at the link below)
3. The waiver is limited to forward mortgages and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

For details on those conditions and further information directly from the source at HUD, go to the link at our Corona Real Estate and Inland Empire Real Estate website: Robert and Christy Real Estate Investor Help