FHA Extends its property flipping waiver through december 2014
In my post, Fannie Mae and the Dodd-Frank Act – Investors Beware, I discussed a quick flipping road block for investors looking to turn properties around in less than three months. At one time, quick flippers had to hold onto their investment property for 90 days before selling it to a home buyer whose loan was secured by Fannie Mae. Since this post, the guidelines have changed.
Selling Your Quick Flips to FHA Buyers
For those quick flippers specializing in acquiring and renovating properties, FHA now encourages investors to renovate foreclosed and abandoned homes to create the availability of affordable homes for first-time home buyers and other purchasers to help stabilize real estate prices as well as the communities.
FHA has extended its Property Flipping Waiver through December 31, 2014.
Everything will stay the same for the next two years, where the seller no longer has to be on the Title of the property for 90 days or more before a new buyer can purchase the subject property on a FHA loan.
While the waiver is designed to assist in the sale of the excess inventory due to foreclosures, it is not limited to only foreclose properties. It is fine for an investor to purchase a property, fix it up, and then resell it to a new buyer who is obtaining FHA financing.
The above information is courtesy of Sean Miller at Van Dyk Mortgages firstname.lastname@example.org / 813-319-6277