On January 28, 2011, HUD/FHA distributed a press release announcing extension of the temporary “anti-flipping waiver”. This regulation was waived last year through January 31, 2011. Now FHA will permit the waiver through the end of 2011.
The release states: “This action will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.” Follow this link to read the entire press release.
This program is a good thing for Philadelphia and the region. It will help properties to move by allowing investors and market forces to operate free of cumbersome restrictions. Prior to the “anti-flipping waiver” FHA required 90 days between the initial acquisition and the date when the property could be place under contract, again. FHA research found that in the current market, purchasing, renovating and reselling a property typically takes less than 90 days. Click this link to read the Anti-Flipping Waiver.
If you have any HUD/FHA or appraisal related questions, please feel free to contact our office at 215.836.5500 or submit your question through our Ask PAB! page link.