Home Flippers get FHA Financing Waiver Extension through 2012

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(Best Syndication News) - The US Department of Housing and Urban Development (HUD) announced that FHA would extend the waiver of their anti-flipping regulation through the end of 2012. This extension of the anti-flipping waiver is intended to speed up the resale of foreclosed properties.

The FHA anti-flipping rule typically prohibits insuring a mortgage on a home that is sold within 90 days. The FHA-insured financing would not qualify for property-flippers. However, with the temporary waiver, these short-term homeowners could renovate and flip the property for a profit while being able to get FHA-insured financing. The home flipper could qualify for FHA-insured financing and could buy HUD-owned properties, bank owned properties, and private sale properties.

The home flipper will be able to resell the home without waiting the 90 day period with the waiver. At this time the FHA has extended the waiver through December 31, 2012. FHA does reserve the right to end the waiver early.

In order to participate with FHA-insured financing, there are strict guidelines that the home flipper must follow. This is to help prevent predatory flipping practices.

FHA issued the first waiver on February 1, 2010. Since then, there have been almost 42,000 mortgages for properties that were flipped within the 90-day period, with property values worth of over $7 billion.

By: N Wilson

Ref: HUD 11-292

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