FHA loan - Waiver of 90 day flipping rule

A waiver of the 90 day flipping rule for FHA loans takes place beginning February 1 2010.

There are a few caveats to this one but mostly, FHA wants to make sure that the waiver doesn't create a new pattern of flipping so they'll be looking for legitimate sellers, checking the title evidence to see if there have been multiple transfers in the past 12 months, and whether or not the property is being openly and fairly marketed.

In cases where the property sells for 20% more than the seller acquired the property for, supporting evidence will have to be supplied demonstrating that repairs, renovations, or rehab work substantiate the increase in the price. The lender will have to order a property inspection in such cases.

This will give opportunity to investors to turn their properties faster and avoid problems associated with having rehabbed houses sit vacant for 90 days and it'll get affordable homes into the hands of home buyers who want to use FHA financing.

This is a big and a good deal!