FHA Flip Rule Waived
Previously FHA had preventing borrowers from purchasing properties that have been purchased by for-profit investors from being bought by FHA loans until they had been owned by the investor for at least 90 days. With the increase in the number of people utilizing FHA financing to purchase properties, this often meant that investors will have to account for holding a property for 90 days before going under contract (of course properties can still be sold via conventional financing).
Because of the number of foreclosed and abandoned properties on the market right now, FHA has waived the Flip Rul until February 1, 2010. There are, however, still requirements that must be met, according to HUD's briefing on the Flip Rule.
1) the seller must hold title to the property
2) LLC, corporations or trusts that are serving as sellers must be created and operated in accordance with applicable state and federal law
3) No pattern of previous flipping of the property exists in the last 12 months
4) The property was marketed openly and fairly
If the property being sold is 20% (twenty percent) over the sales price that the investor purchased the property at, the following must occur:
1) a justification of the purchase price based on market comparables and/or a second appraisal varifying that the seller has completed a sufficient amount of renovations to the property to justify the increase in the purchase price.
2) That the lender orders a home inspection for the buyer before closing.
This is definitely good news to the investors that are interested in flipping properties, as the carrying costs can sometimes be a significant portion of the cost of flipping a home.
If you are interested in purchasing homes to flip in Norman, OK, Moore, OK, Noble, OK, or Oklahoma City, please feel free to contact me for additional information on homes that might be available.
Click the following link to search for homes for sale in Norman, Moore, or Oklahoma City.
Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com
"It's not about houses -- It's about homes."
I am a Real Estate Agent specializing in homes in Norman OK, Moore OK, Oklahoma City OK, and Edmond. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Real Estate Agent -- let me know how I can help you with your next move in Norman OK, Noble OK, Moore OK or Oklahoma city OK!