To help protect consumers from unscrupulous investors that “fix and flip” homes without regard for quality, the Federal Housing Administration (FHA) has a rule that requires the home owner to have possession of a home for at least 90 days before they will insure it. The means that the borrower could not qualify for an FHA loan for such a home. With all of the changes in the mortgage industry, FHA loans are now a very popular option, so this would pose a challlenge for investors wanting to sell homes and would-be home owners seeking to get a deal from an investors.
The good news for both investors and those seeking to purchase homes from real estate investors is that the FHA has suspended the anti flipping rules for now. The ultimate goal of the FHA is to increase sales of foreclosures given that investors have the resources to buy them, rehab them and then put them back in the market.
What has not changed is the credit qualifying guidelines, so if you are seeking to purchase a home, I would contact a mortgage lender as soon as possible to get qualified.
1 Comments
I think this is a step in the right direction for the housing industry. Everything they can do to learn from pass mistakes so we do not have a housing crisis like this again in the near future.
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