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NO More 90 day rule for FHA financing!

January 18, 2010

FHA tried to limit flipping by not allowing financing on a property that was flipped. Their 90 day rule did not allow financing for a property that the seller had owned for 90 days or less.

The ultimate result was that FHA buyers had to buy from owners only and could not buy fixers or fixed up properties. If I am reading this correctly, this new rule now allows FHA financing on flipped properties but not fixers.

What do you think? Will this help invigorate our current market?

U.S. Department of Housing and Urban Development (HUD)

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS
Measure to help bring stability to home values and accelerate sale of vacant properties

WASHINGTON – In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.

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2 Comments leave one →
  1. January 18, 2010 1:00 am

    Nice writing style. I look forward to reading more in the future.

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