Monday, September 21, 2009
FHA waives 90-day restriction on selling “Flip” houses
Until now, if an investor tried to flip a property (purchase then sell the home quickly) in a period of less than 90 days, the FHA would not insure the mortgage for a new buyer. In other words, a new buyer for the repaired or renovated property could not obtain FHA financing if the home had been purchased and put up for sale again in the last 90 days. From September 14, 2009 to September 13, 2010, that provision has been waived by the FHA. This will apply to previously foreclosed or abandoned properties acquired and resold. The property must still meet FHA’s requirements in order for the buyer to finance the property however those properties that were previously off limits may now close without having to wait the mandatory 90-day moratorium.