The Federal Housing Administration (FHA) is extending its 90-day “anti-flipping” rules through 2014. This action is excellent news for single-family investors, buyers and rehabbers who are seeking low-interest mortgages with a low down-payment.
By extending this rule FHA hopes to increase, “the availability of affordable homes for first-time and other purchasers, helping stabilize real estate prices as well as neighborhoods and communities where foreclosure activity has been high.”
The extension does come with some caveats,
▪ The property cannot have a pattern of p devious flips during the previous 12 months
▪ If the property being resold is m ore than 20% higher than what the seller paid for it, documentation is required to justify improvement were made to result in a higher value
This is a good move by FHA, investors and buyers are in the market and want to buy, any assistance they can obtain is helpful to the recovery of real estate and the economy in general.
About the Author
Kristal has been helping buyers and sellers in Colorado since 1984. She enjoys sharing her knowledge of the Metro Denver Real Estate market via blogging and in person while driving around the beautiful Rocky Mountain town of Denver! For fun, Kristal enjoys shooting things with a Canon. Visit Denver Photo Blog