25. January 2011 03:48
Good news for rehabbers and flippers....
For many years the Federal Housing Administration has prevented buyers from taking out FHA loans for homes that are quickly flipped by Investors. In 2010 they relaxed the 90 seasoning rule to help ease the flow of distressed homes to new buyers.
Relaxation of the anti-flipping rule also helps out Rehabbers who will fix up a distressed property and put it back on the market in mint condition to retail buyers.
The anti-flipping rules were originally put into place to eliminate illegal schemes where shady investors and appraisers over-valued property in order to resell for a profit. The latest rules for appraisers and other safeguards within the mortgage industry should prevent this type of illegal practice from happening while justifiable profit from Short Sale flips continue to take place with the blessing of the FHA—at least through 2011.
Marc Austin Highfill
Exit First Realty
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