The Federal Housing Administration (FHA) announced that it will extend its "anti-flipping" waiver through 2014. This is welcome news for real estate investors.
The FHA classifies "flips" as homes that have been purchased and sold within a 90 day period.
In 2003, the FHA implemented the "anti-flipping" rule to curb against fraudulent transactions. In 2010, the FHA approved a temporary waiver of the rule to help restart the housing market. In early December, the FHA extended the waiver through 2014 to provide some more certainty to the market.
Key Elements of the Extension:
- All transactions must be "arms-length" with no identity of interest between the buyer and the seller;
- If the difference between the original purchase price and the final sale price is greater than 20%, the seller must provide detailed evidence of the repairs justifying the higher resale price;
- Inspections are required on all key components of the building structure and systems when the sale price exceeds the 20% threshold.
You can access the article by clicking here.
Justin C. Brennan
Estates Director
Harcourts Prestige Properties
7825 Fay Ave # 190
La Jolla, CA
619-823-2120
Videos | Blog | Facebook | Youtube | LinkedN | Search San Diego Homes | Search International Homes | Luxury Property Selection
CONFIDENTIALITY NOTICE: This e-mail message from Harcourts (including all attachments) is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review; use, disclosure, copying or distribution is strictly prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. DRE License #01866398
No comments:
Post a Comment