FHA Extends Suspension of Anti Flip Rule Benefiting Investors and First Time Home Buyers

FHA Extends Suspension of Anti Flip Rule Benefiting Investors and First Time Home Buyers

The Federal Housing Administration (FHA) intended to prevent mortgage fraud when it developed and “anti-flipping” rule preventing FHA borrowers from buying homes that had been owned by sellers for less than 90 days. Unfortunately, unintended consequences squelched legitimate purchases of foreclosed and damaged homes by small scale investors planning to repair and resell such homes. Vacant and abandoned homes cause a negative impact to surrounding property values.

In extending its suspension of the anti-flipping rule, FHA is demonstrating its commitment to Bay Area and Central Valley communities improving local housing markets. Small scale investors who buy and renovate damaged homes are providing a source of affordable housing for first-time buyers and others wanting to purchase homes in move-in condition, and who don’t want to concern themselves with the risks associated with buying foreclosed homes sold in as-is condition.

Such home renovations and sales are contributing to the nation’s housing recovery. The benefits of allowing quick turnovers or “flips” of homes by legitimate investors help to stabilize property values and reinforce the dream of home ownership to first time home buyers.

If you or someone you know would like to invest in Real Estate or buy a home as a first time home buyer, email us below.

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