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Flip away: FHA extends waiver through 2014

December 5, 2012 @ 8:26 am

The Federal Housing Administration is extending its 90-day "anti-flipping" waiver through 2014 which could bode well for single-family investors, rehabbers, and buyers seeking low down payment financing.

The waiver, announced in the Federal Register, allows buyers to purchase homes that have already been sold in less than 90 days.

The purpose of the two-year extension to the waiver is to increase "the availability of affordable homes for first-time and other purchasers, helping stabilize real estate prizes as well as neighborhoods and communities where foreclosure activity has been high," said Carol J. Galante, acting FHA commissioner about the extension.

In 2003, FHA issued an anti-flipping waiver to stop a high number of home flipping, which was being blamed on inflating home values. The FHA rule prevented FHA-backed loans from being used to purchase homes that had been owned by a seller for less than 90 days.

In 2010, the U.S. Department of Housing and Urban Development decided to reconsider that 90-day limit when foreclosures started to cause blight in neighborhoods and put downward pressure on property values.

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  • Realitycheck wrote...
    That is right
    December 10, 2012 7:39 pm
    Make the rich richer, why not. I mean, g o d forbid that poor investor needs to pay higher interest that cuts into his/her profit. Have we learned anything? Apparently not. Houses are for families to increase their net worth and to have a home, they are not stock and should never be speculated on like stock. Because of greedy investors and banks millions of honest hard working people either lost their home or are underwater. Shame on FHA to support these people by handing over taxpayer backed cheap loans that should only go to families.
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