The Federal Housing Administration (FHA) has extended a temporary waiver of its anti-flipping regulations through the end of 2012.
With certain exceptions, the FHA rules prohibit insuring a mortgage on a home owned by the seller for less than 90 days. In 2010, the FHA temporarily waived this regulation through Jan. 31, 2011, and later extended that waiver through the remainder of 2011. All terms of the existing waiver will remain the same.Â
According to the agency, the new extension will permit buyers to continue to use FHA-insured financing to purchase properties owned by the U.S. Department of Housing and Urban Development, bank-owned properties or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.
‘This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight,’ says Carol J. Galante, acting commissioner of the FHA.