Early this month I posted about the impending expiration of the 1-year suspension that was imposed on the "FHA 90-day Anti-Flipping Rule" and the potentially negative impact this would have on our local Sacramento real estate market.
Well, great news! The Federal Housing Administration has extended the suspension! It means that buyers seeking to finance a home with an FHA loan will still be able to finance a "flipped" property that has been owned by the current seller for less than 90 days. Before the initial suspension a year ago, the “Anti-Flipping”rule meant that a buyer using an FHA loan to finance the purchase can not finance a flipped home until the title to the home has been held by the current seller for 90 days or more.
As you can probably guess, a “Flipped” home is one that someone purchases with the intent to resell it within a short time period for a profit. Also, one thing that many people do not realize, is that the flipping rules for lending can also apply to transfers of title from placing the property in a living trust, adding a family member to title before listing it for sale, etc….not just investors looking to profit from flipping.
So...yay!
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment