FHA Extends Waiver of "Anti-Flipping" Rule Through 2012

The Federal Housing Authority (FHA), extended the waiver of the “anti-flipping” rule through 2012. This means that homebuyers who are planning to buy properties using FHA-insured financing will be able to buy homes that have been “flipped” and are back on the market in less than 90 days.  How This Will Help Stimulate Real Estate? With so many distressed properties on the market, there are lots of investors out there who are looking for opportunities to “flip” homes. “Flippers” go in and rehab the homes quickly in order to make a profit and put the homes back on the market in a short amount of time. In many cases, the homes are ready for resale in less than 90 days. The “anti-flipping” rule prevented FHA buyers from purchasing these homes until they had been owned by the “flippers” for 90 days. This meant that FHA buyers were not eligible for these properties. Fortunately, with the extension of the “anti-flipping” waiver, FHA buyers are eligible to buy these homes through 2012. With more buyers eligible for these homes, there is more opportunity for them to sell! What This Means For FHA Buyers? FHA buyers have a great opportunity to buy homes that have been rehabbed by “flippers.” Due to the extension of this waiver, FHA buyers will have more options to consider during their home search. Are you considering buying a home using FHA financing? Contact us for more information. We also have many clients who are “flippers” and know about upcoming listings that might just be the home for you!