Featured Post

MORTGAGE HELP FOR UNEMPLOYED

HAMP, HAFE and now UP. UP is the Home Affordable Unemployment Program. It is a new program designed to supplement the Home Affordable Modifi...

Jan 2, 2012

FHA flip waiver extended through 2012

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.

No comments:

Post a Comment