« Analyst: Housing a Good Investment in 2010 | Home | Fannie, Freddie Go After Bad Loans »
FHA Relaxes Anti-Flipping Rule
Posted: Administrator on Feb 08 | Headlines
Beginning Feb. 1, the Federal Housing Administration will provide mortgage insurance for some purchases in which the seller bought the property and held it for fewer than 90 days.
The agency is changing what is known as the “anti-flipping rule” to speed up sales of renovated homes in communities with too many bank-owned and foreclosed homes, says FHA Commissioner David H. Stevens.
Waiving the 90-day rule will encourage private investors to buy vacant properties, fix them up, and quickly sell them to buyers who will be eligible to buy them using FHA financing.
FHA’s change “is going to be absolutely terrific” for first-time home buyers hoping to take advantage of the tax credit, says Bobby Taylor, an associate with Coldwell Banker Mountain West Real Estate in Salem, Ore.
source: realtor.org
You must be logged in to post a comment.
No comments
Jump to comment form | comments rss | trackback uri