FHA UPDATE-Anti Flipping Extended

It is now official, FHA has extended the Waiver of Anti-Flipping Regulations through December 31, 2012.  

 This extension will continue to allow borrowers to use FHA-insured financing for the purchase of properties that have been owned by the seller for less than 90-days, meeting the same conditions as previously permitted by FHA.

• 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 and documents the justification for the increase in value. This typically means a second appraisal and home inspection.

This is great because it still encouranges investors to buy homes and fix them up creating more inventory that is fixed up and can be closed on without doing a short sale.