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

Corona City Council Down Payment Assistance

Amidst all the banking and lending turmoil, The Corona City Council is considering offering Down Payment Assistance to Corona residents. The Corona Redevolpment Agency is onsidering offering $1.5million in interest free loans for First Time Home Buyers.

We view this as a great step to helping Corona Families purchase one of the hundreds of vacant homes in Corona due to all the foreclosures. As of today, there are 523 homes under $300,000 compared to under 50 a few years ago. We believe this will be a great catalyst to the Real Estate Market in Corona. Although we think the Market is doing Great right now with Supply of Homes the lowest since spring of 2005 and the Sale of Homes the highest since the same time period.

They also offer a great incentive to keeping the buyer to stay in the city for up to 7 years. This allows the resident to get established in this great city. To qualify, buyers must meet income guidelines, be able to pay 3 percent of the home's value, and live in the home at least seven years or pay the city a share of any profits if they sell.

One of the main questions we have is how FHA will handle this Down Payment Assitance from Corona. FHA announced a few weeks ago that they will no longer consider Down Payment Assistance for FHA loans.

We will all have to stay tuned...

Click here to learn more fron the Press Enterprise article

If you are a First Time Home Buyer, please visit our website RobertandChristy.com and click on the Buyers Assistance tab for helpful information on buying a home.

Take care everyone and have a Blessed Day!
:)