Happy New Year everyone!
We start off the year with some good news, for the second year in a row, the Federal Housing Administration is
extending a temporary waiver of its "anti-flipping" rule, meaning home buyers can use FHA-insured financing to
buy homes that have changed hands in the last 90 days such as those sold by investors.
This waiver
is important for our recovery as it allows investors seeking to rehab and flip the huge influx of distressed homes expands the pool of eligible borrowers to include those relying on
FHA-backed loans popular with first-time home buyers
In extending the waiver
through 2012, FHA still requires the transaction to be arms-length.
In cases in which the sales price of the property is 20 percent or more
above the seller’s acquisition cost, the waiver will apply only if the seller can document the justification for the increase in value which is also typical.
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