FHA suspends 90 day anti-flip rule

January 16th, 2010 Categories: Real Estate News

SAN DIEGO- Well there’s more good news for homebuyers. FHA loans, which already make up a large portion of our current market, can now be used to buy homes that are being ‘flipped’. Starting February 1, the FHA 90 day anti-flip rule will be suspended for one year.

While this may seem like a boom to flippers, there is a clause limiting the seller’s profit to not more than 20% unless an appraiser can justify the added value from repairs and renovations.

The move will open a new pool of homes to first-time homebuyers who have been losing bids to cash buyers, but shouldn’t have much effect on home prices, analysts said.-nctimes.com

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