Starting today the Federal Housing Administration is revising its long-standing 90-day anti-flipping rules.
For much of the past decade the FHA’s 90-day anti-flipping rule went like this: if the seller had owned a property for less than 90 days, then the FHA would not insure a new mortgage for the buyer. The ban was imposed to prevent fraudulent quick flips of houses.
The FHA is now suspending this policy for at least the next year. One of the goals of the new policy is to speed up sales of renovated houses (i.e. foreclosures) to first-time buyers and other purchasers.
Read the Washington Post story here: To boost sales of foreclosures, FHA suspends anti-flipping rules