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Home | News | Foreclosure | FHA Anti-Flipping Waiver Extended Through 2014
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FHA Anti-Flipping Waiver Extended Through 2014

FHA flipping rules

HUD plans to waive the Federal Housing Administration's (FHA) anti-property-flipping rule through December 31, 2014. The agency is extending the temporary waiver that was put into place in January 2010 for another two years to encourage investors to acquire and renovate foreclosed and vacant homes.

FHA rules typically prohibit insuring a mortgage on a home owned by the seller for less than 90 days, but HUD notes that the housing market's downturn led to an outsized rise in defaults, and consequently a rapid increase in vacant foreclosed homes. Though efforts to keep families in their homes have averted millions of foreclosures and helped to mitigate some of the damage from the crisis, HUD says foreclosures remain "unacceptably high" and affect not only the families that lost their homes, but entire neighborhoods and communities.

While the agency's primary goal is to help homeowners remain in their homes, HUD says in cases where that's not possible, waiving the FHA regulation on property flipping will help stabilize neighborhoods and communities where foreclosure activity has been high. The waiver is applicable to all single-family properties being resold within 90 days of the seller acquiring the property and is not limited to foreclosed homes. The waiver is subject to certain conditions and is not applicable to mortgages insured under HUD's Home Equity Conversion Mortgage (HECM) Program.

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About Author: Carrie Bay

Carrie Bay
Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

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