First time home buyers, this is your LUCKY YEAR!
HUD just announced that it is removing the 90-day flipping rule which allows homes to resell at a faster pace, assisting with stabilizing real estate prices and rejuvenating neighborhoods that have been hit hard from the collapse of the housing market.
This move will allow the Marketplace to help itself! Now, you can purchase a home and get financing within the first 90 days. This will help those investors out that buy a home, fix up, then want to resell it!
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner.
HUD also put some temporary guidelines into place in order to protect FHA borrowers from being targeted by sellers who inflate the prices of their properties in order to make a quick sale.
In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
To read this press release in its entirety, please visit:
http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-011
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