HUD announced today starting February 1, 2010 they will waive the 90 day flipping rule!

Posted by Carolyn A. Capalbo on Saturday, January 16th, 2010 at 10:32am.

HUD will approve financing on a property that had been previously purchased and rehabbed within the past 90 days.  This is great news for investors and first time buyers alike.  For our FHA buyers out there, this means no more waiting for an investor flip to be eligible for FHA financing.  It has been frustrating to see investor flips only going to those with conventional loans and/or VA loans.  Since over 80% of our first time buyer market is pre-approved for FHA financing this is a huge win and opportunity for our investors and buyers alike.  It could also allow for investors to either, improve their profit margins or increase their initial purchase prices and purchase more homes since their holding costs will go down significantly.  Our buyers out there win, since these investors are taking homes that require repairs for FHA financing and turning them into turn-key properties!  Many first time buyers do not have the money to renovate themselves and many agents out there avoid FHA 203k renovation loans since they are time consuming and difficult loans.  This will give our owner occupied purchasers a clean, move in ready option without waiting!  In my opinion, this is a step in the right direction.  Less government regulation here, will open up markets, and improve competition.  Any Questions on how this impacts you?  Give me a call or shoot me a line! 

Carolyn Capalbo,
Northern Virginia REALTOR®

 

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