Finally! It's official! FHA extends Anti-Flipping Rule

It’s official!  After much deliberation and several “unofficial” preliminary reports – FHA did announce Jan. 31, 2011 that they have extended the “Anti Flipping Waiver” through December 31, 2011.  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.   Further, it allows homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

So, unless this is otherwise extended or withdrawn by FHA, we’re good to go for quick resales.  As before, there are restrictions covering “arms length” transactions and prices where property is 20 percent or more above seller’s acquisition cost.   This does help those of us who purchase and resell foreclosed homes. 

Read the details of the waiver:  http://www.hud.gov/offices/hsg/sfh/currentwaiver.pdf