FHA announced that the suspension of the Anti-Flipping Rule has been extended through January 2012.
This means that homebuyers using FHA financing to purchase a home will be allowed to use this financing on homes that are being flipped (technically speaking: bought, renovated and sold within 90 days).
This is great news as it allows that excess inventory of homes on the market that need some TLC (some more than others) can be renovated and sold to a larger pool of buyers.
All sides win:
- seller wins because investors are more willing to buy
- buyer wins because they have newly renovated homes to choose from, which they can use the popular FHA financing toward (only 3.5% down payment required)
- community wins because delapitated homes are being fixed up
- homeowners in the area win because it gets the extra supply of homes off the market, which will help home values
- FHA and mortgage lenders win because these loans are performing well
- Realtors win because they have better products for their clients and they continue to have access to the loan program that allows the buyers to close on these homes
It is refreshing to have good news come from HUD and FHA.
Should you or someone you know be considering purchasing a home for renovation or if you are looking for one of these renovated homes, please contact me for more information.
And read this article from the LA Times for more insight into this rule.
http://articles.latimes.com/2011/jan/16/business/la-fi-harney-20110116
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