FHA News for Flippers - Are you a flipper? re habber? Govt is going to slow you down, FHA killing quick flips.

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"Can you still do a short-term house flip using federally insured, low-down-payment mortgage money? That’s an important question for buyers, sellers, investors and realty agents who have taken part in a nationwide wave of renovations and quick resales using Federal Housing Administration-backed loans during the past four years.....officials say, it’s time to revert to the more restrictive anti-quick-flip rules that prevailed before the waiver: The 90-day standard will come back into effect after Dec. 31 2014.

The answer is yes: You can still flip and finance short term. 

But get your rehabs done soon.


What do you think @J Scott @Ann Bellamy @Ned Carey @John Jackson ????

@Brian Gibbons I've seen where FHA required 2-3 appraisals if the turn around was less than 90 days..as they wanted to protect themselves on the value of the property.

That still seems to be true, but would have to inquire with flippers to let you know. 

I know lots of contacts with HVA that could add to this. 

In the Northeast, the housing stock is old.  100 years old is not at all uncommon, and is the norm with 2-4 unit buildings.  

As a result, by the time a flipper rehabs, lists and gets a buyer, it is relatively rare for that to be accomplished in less than 90 days anyway.  Many rehabs are not just cosmetic.

So while it will have an impact, it won't be a huge deal. 

The bigger deal was deed restrictions where the rehabber buying distress property couldn't resell or encumber the property for more than 120% of purchase price within a given time.  That made construction loans from hard money lenders difficult.  

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