For another whole year, through Jan 2012!
What does this mean exactly ?
Homes that were purchased (by Investors) and resold aka “flipped” (usually for profit) . . will be allowed with certain restrictions even if the home is being resold within 90-days of the Seller (investor) acquiring it.

This helps the housing market by providing affordable financing with flexible terms for thousands of homes which would otherwise only be financeable with CONV or other types of financing.

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9 Responses to “HUD extends FHA Waiver of Anti-Flipping Rule”
  1. Tyson says:

    A married couple foreclose on a home but only the wife was on title and the loan because she married after she bought her home. Can the husband get an FHA originated loan for another home? Knowing that they can not buy the home they foreclosed on, does he have a chance with buying another home since he has good credit and great income?

    • Administrator says:

      Tyson
      our Underwriter at American Financial has allowed these situations to pass through. Technically one spouse cannot be penalized for the isolated credit faults of the other. Particularly if the spouse you referenced above purchased the home she eventually lost in foreclosure, before she married the Borrower (husband) who seeks to get approved for FHA financing.
      Call me further to discuss.

  2. Robert Dinare says:

    Doesn’t this only apply if an individual or some kind of investment group buys the property to resell? I don’t think it applies for the big banks right??

    • Administrator says:

      Robert
      correct. The Flip rule only applies to privately resold properties. Federally chartered banks/Fannie Mae/Freddie Mac and HUD/VA etc are not subject to the flip rules. In other words, Fannie Mae could take a property back through foreclosure today and resell it tomorrow and the profit/resale value is not of any significance as far as a Buyer getting a FHA loan.
      Charles

  3. Robert Dinare says:

    Doesn’t this only apply if an individual or some kind of investment group buys the property to resell? I don’t think it applies for the big banks right ??

  4. Rowell Mendoza says:

    I am new to this site, but thought I’d ask this question. OK my Loan officer called me and said we need to get a 2nd appraisal. I don’t know whats wrong with the first one (?????) so he tells me there’s some requirement now where if the house was bought and sold (which we knew was what was going on), they gotta get a 2nd one? I am out of pocket $400 bucks already. What the heck???

  5. paulmarit says:

    are you sure this helps?

  6.  
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