If you are a rehabber or wholetaler and you been sitting on the side lines because of the “anti-flipping” law that doesnt allow you to sell a property if you did not own it for at least 90 days then its time to get up. The Federal Housing Administration is temporarily waiving its “anti-flipping” rule which will allow the insurance of mortgages on properties that have been owned for a short period of time.

This creates a great advantage for investors performing short sales or rehabilitating properties because he popular FHA fixed mortgage program can allow them to quick turn the deal for a profit. HUD had adopted the 90 day rule after many shady investors were purchasing city property foreclosures and reselling them within a few days to home buyers that could qualify for the FHA loans.

Buyers that were un-educated in the home buying process were purchasing these homes with inflated prices and were shocked that they could not make the mortgage payments which caused a tidel wave of foreclosures.

The revised policy for FHA will allow purchasers to be financially capable of handling as well making sure apprasials are more accurate in the underwriting. This would hope to bring more balance in the market as buyers and bank qualifications are more strict.

If you are an investor or aspiring investor and you would like more information about Property Flips contact me today.

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