Anti-Flipping Waiver – extended 2 years by FHA
Published On: March 5, 2012 Posted by: TownsRealty
The 90-day anti-flipping waiver is extended by Federal Housing Administration through 2014. This extension is great for buyers seeking low down payment financing, rehabbers and investors.
This allows buyers to purchase homes that have already been sold in less than 90 days.
The waiver’s two-year extension purpose is to increase the availability of affordable homes for first-time and other purchasers.
The latest two-year extension to the waiver includes several requirements:
- The property can’t have a pattern of previous flips during the 12 months before the transaction.
- If the property being resold is more than 20 percent higher than what the seller paid for it, the seller must produce documentation showing renovations and repairs made to justify the sales price. Inspections are required when price jumps are higher than 20 percent too.
This will definitely benefits investors, but also the communities where there are high rates of abandoned, deteriorating foreclosures.