15 JanFHA 90 Day Flipping Rule – WAIVED

Have you heard of the FHA 90 day flipping restriction? If not, here is a quick overview…

If you are a buyer looking to buy a home with FHA mortgage financing you must buy a home from a seller who has owned that home for 90+ days or from a seller who is exempt from the rule. Here are the sellers who are exempt:

• HUD
• Government Agencies
• Qualifying Non-Profits
• Banks
• Sale as a result of inheritance
• Relocation Companies
• Fannie Mae
• Freddie Mac
• Designated Disaster Areas

The Department of Housing and Urban Development (HUD) has issued a news release indicating they will put into place a waiver to be effective February 1, 2010 removing this flipping restriction.  This will be a temporary waiver good for one year.  In order for the property to be eligible for this waiver the following criteria must be met:

• Arms-length transactions only – no identity of interest between the buyer and seller or other parties participating in the sales transaction
• Seller sells for 120% of the price they purchased the home at or less (some exceptions may apply)
• Standard FHA mortgages only – no Home Equity Conversion Mortgages (HECM) This waiver is scheduled to go into place Feb 1, 2010 for one year

For additional details visit the HUD site for the official Press Release.

This is great news to help sales go quicker than they have since HUD implemented the flipping restriction.

Lending A Hand

Scott Wynn

The Wynn Team

About the Author | Scott & Marla Wynn

Scott & Marla Wynn are mortgage lenders with a focus on education. We believe an educated customer is our best customer. The mortgage industry has complicated the process of obtaining a mortgage so much that most customers believe the best way to select a mortgage lender is to inquire about rates and fees. Although rates and fees are an important part of the mortgage process, there are much more important areas to be concerned with. Lending A Hand was created to pass along our experience, knowledge and research to YOU to allow you to become a more educated mortgage customer. If you are planning a home purchase or refinance and live in the state of Colorado, we hope you select the Wynn Team as your mortgage lender!