GREAT NEWS 90 Day Flip Rule LIFTED!!!

Here it is!!!! What great news for ALL buyers and investors!

FHA To Waive 90 Day Flip Rule
In the current marketplace home buyers are prevented from obtaining an FHA loan for the purchase of a home that had been acquired in the past 90 days buy the seller. In essence, a buyer was unable to purchase a flipped property, or one that was bought and sold quickly. However, come February 1, 2010 this rule will change to allow for home buyers, with certain restrictions, to buy these type of properties. The new 90 day flip waiver complete information has already been released by the FHA and will be in place for the next 12 months. Below is an excerpt from the official release of this new program waiver. Of Course as always we will provide additional updates on this program, including when lenders will officially start allowing this type of financing again as well.

"In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

•All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

•In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions."