90 Day FHA Flip Rule Lifted!
If you haven’t heard, the 90 day flipping rule for FHA loans has been lifted. This is amazing news to all real estate investors and positive news for the market overall. In short, this overdue policy change will bring added liquidity to the market. The change is set to take place on February 1, 2010.
In the past home owners that had not been on title to their property for at least 90 days or longer were precluded from selling to an FHA buyer. Now please explain to me why the government would have put up an obstacle like this one for people that were rescuing distressed property from going into foreclosure and piling up on top of the hundreds of thousands of already existing REO properties? It never made any sense. Investors that purchase distressed property often fix them, which has the effect of raising property values. They also lessen the work load for the banks that already can’t handle the amount of property they are having to take back as it is.
Fortunately, our esteemed government officials came to their senses and are now lifting the 90 day flip rule. I suppose it is better late than never. Don’t you agree?