FHA Extends Anti-Flipping Waiver through 2012
The Federal Housing Association (FHA) has extended the temporary waiver of the anti-flipping regulations through December 31, 2012. The FHA typically prohibits insuring a mortgage on a home that has been owned by the seller for less than 90 days. However, with this new extension, buyers will be permitted to use FHA-insured financing to purchase HUD-owned and bank owned properties, no matter how long the homeowner has held the title.
This extension is part of the FHA’s continued effort to help stabilize home values and improve conditions in communities experiencing high foreclosure activity. The waiver contains strict conditions and guidelines to prevent the predatory practice of property flipping, where properties are quickly resold at inflated properties to unsuspecting buyers.
Since the original waiver went into effect on February 1, 2010, FHA has insured nearly 42,000 mortgages worth more than $7 billion on properties resold within 90 days of acquisition.
Click here to read a copy of the FHA’s Anti-Flipping Waiver