FHA changes rules
Friday, September 25, 2009
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Many 1st time homebuyers choose FHA loans because of the minimal down payment involved.
This would significantly reduce the number of prospective buyers. That has all changed!
On Friday, FHA announced the suspension of the anti-Flipping 90-day waiting period.
Prior to September 14, 2009, FHA products were denied to buyers purchasing homes from investors that buy homes, rehab them, and sell them within a 90-day period. Previously, the only option to purchase these homes was through conventional financing (which requires a higher down payment) or a cash-only purchase.
This revision allows homebuyers to expand their market when searching for a home and gives them the opportunity to secure a much lower down payment. More investors and buyers will be encouraged to purchase homes due to this major change.
Take a look at the revision:
Section 203.37a(b)(2) of the FHA regulations, 24 CFR, is hereby waived for a period of one year, September 14, 2009 through September 13, 2010, with regard to sales of previously foreclosed or abandoned properties acquired and resold by for-profit and non-profit entities using funding from and performing under agreements with state and local government agencies under the NSP program.
http://www.hud.gov/offices/hsg/sfh/waivpropflip.pdf
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