Meridian Capital Holdings

Great news for home buyers and housing renovators, FHA has extended the waiver of anti-flipping rule through 2012.  This is the 3rd year in a row, in which the FHA has waived the rule.

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=269135

“With certain exceptions, FHA rules prohibit insuring a mortgage on a home owned by the seller for less than 90 days. In 2010, however, FHA temporarily waived this regulation through Jan. 31, 2011, and later extended that waiver through the remainder of 2011. The new extension will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties or properties resold through private sales. It will allow homes to resell as quickly as possible.”

“FHA justified the extension by noting that professional flipping often takes less than 90 days, and making an investor wait deters buyers who must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant for about three months.”

Meridian Capital Holdings is a supporter of this waiver and believes it should be permanently waived.  If in the worst housing environment in many decades the FHA is relying on”flippers” to help mend the housing market, how come during normals times we can’t be relied on to improve property values as well?

Tags: Central Florida Real Estate, FHA, Meridian Captital Holdings, News, Waives Anti-Flipping Rule