Recently, we investors have had some good news, as it relates to FHA financing (many of our buyers now are first-time home buyers, using FHA insured loans for their 3.5% down program, and less strict credit requirements). As of now, they require that any property they lend on, be held by the same buyer for at least 90 days prior to the closing. Now, they’re suspending that. Check out below:
HUD just announced that, effective February 1, 2010, they are suspending the FHA 90 Day Anti-Flipping Rule.
With certain exceptions, such as HUD-owned and bank-owned properties, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. However, beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors, providing access to a broader array of recently foreclosed properties.
Under the temporary waiver, all transactions must be arm’s-length. In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
For more information about these changes please visit the HUD website.
See? Who says the government isn’t looking out for us investors? In truth, they are finally realizing that WE are the key to turning around the housing market. With so many foreclosures and properties that are deemed “unfinanceable”, only investors will be able to make home ownership possible again. Couple that, with a more responsible economy (we all hope), and we can start the upswing again… but not beforeanother huge WAVE of foreclosures comes out to the market.
Again, I say, what an incredible time to be a real estate investor!
And now, for a shameless plug for anyone in the Boston area
I’d love to see you at our Big WHOLESALING Event, in Billerica MA on Feb 6. The whole day will be focused on:
- Getting people out there,
- Making OFFERS,
- And getting their deals sold
Check out this link for the details: Wholesale Workshop
As always, Happy Investing!