FHA 90-day anti-flipping rule waived

Brian Ripp — Wed, 03 Feb 2010 18:12:05 +0000

The Dept. of Housing and Urban Development (HUD) announced Friday it will eliminate for one year the Federal Housing Administration (FHA) 90-day anti-flipping rule.
FHA’s anti-flipping rule generally prohibits insuring a mortgage on a home owned by the seller for less than 90 days. That rule already has been waived for certain transactions, including REOs. Beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors. This one-year waiver will give FHA buyers access to a broader array of recently foreclosed properties.
Under the temporary waiver, all transactions must be made at arm’s-length and may require additional documentation of improvements and justification of certain price increases. Additional documentation may include a second appraisal and a property inspection ordered by the lender.
C.A.R. recently submitted a letter to FHA Commissioner David Stevens detailing the challenges facing many FHA home buyers, such as the lack of housing inventory available to them, and the need to revise this rule to reflect current market conditions. The reexamination of the 90-day anti-flipping rule was passed as an action item during C.A.R.’s board of directors meetings in October.

from: C.A.R. Newsline e-mail update

FHA Policy Changes

Brian Ripp — Mon, 18 Jan 2010 19:26:19 +0000

Starting Jan. 1, 2010, the Federal Housing Administration will adhere to new credit standards and appraisal guidelines for FHA-insured mortgages. The new guidelines, which essentially align with HVCC rules, will prohibit the undue influence of appraisers, or the choosing of an appraiser, by mortgage brokers or commission-based lender staff. In addition, the FHA’s appraisal validity period will be reduced to four months for all properties including existing, proposed, and new construction. The action also provides new guidelines allowing a second appraisal to be ordered in some instances including when a borrower switches lenders.

for more info, go to www.hud.gob/office/adm/hudclips/letters/mortgagee

Brian Ripp ~ Your Bay Area & Fremont Real Estate & Financial Agent » hud

FHA 90-day anti-flipping rule waived

FHA Policy Changes