Previously, FHA regulations did not allow mortgages on homes owned by the seller for less than 90 days. In 2010 this rule was waived to allow 'flippers' to purchase and renovate distressed properties ( mostly foreclosures) and then resell them to the many picky buyers who want a move-in ready house.
This has helped the housing market and the feds have actually made a smart move by extending this waiver through the end of 2012. Fortunately, they've kept some of the restrictions to prevent previous mortgage frauds and disasters. These FHA backed sales are subject to a property inspection, buyer credit and background approval, and other restrictions.
Since the 2010 waiver, there have been more than 42,000 properties purchased with FHA backing that previously would not have qualified due to the 90 day seller restriction. That represents more than $7 billion in sales that may not have happened.
Eager buyers are fueling today's demand for renovated homes at low interest rates. And in today's market, an investor can buy, renovate and resell a home in 90 days or less. But if the sales price is more than 20% over the previous purchase price, the flipper must document the expenses incurred in the renovation and repair of the property. Provided the investor knows what they are doing, 2012 continues to be a great market for flipping.
9 comments:
There is no possible argument for property investors to ignore social networking any longer.
Association Management
Wow this is really great! cool offer...Provided the investor knows what they are doing must take advantage of this..
More activity in the housing market is a big boom to the economy. Looks like the FHA backed sales are doing a great job at aiding market recovery.
First time at your site and I really enjoyed reading it. I will come back again in the future to check out some of the other articles.
This statement gave both the investors and realtors a win-win outcome. FHA has been so nice to real estate industries, providing them big chances to make up for their sales. Home flippers are certainly taking advantage of this one great opportunity.
I just take a peek and I discovered your blog. I appreciated this. Thanks and keep posting.
Khear
Do you have a listing of any flippers in DFW area? I see the A&E show goes to San Antonio but this area is larger.
It was a great experience to visit here and gaining the knowledge of the real estate indore and it is going to help me a lot for finding better house.
Real estate investors fliping over. Useful post
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