FHA Extends Property Flipping Waiver till December 31 2014
Update to Property Flipping Waiver – FHA Extends the Waiver till December 31, 2014
In 2006, HUD published a final rule in the Federal Register amending regulations at 24 CFR 203.37a, prohibiting property flipping in the HUD/FHA single-family mortgage insurance programs by providing additional exceptions to the time restrictions on sales. The rule and Mortgagee Letter 06-14 became effective for mortgages endorsed for insurance on or after July 7, 2006.
For properties that do not meet the property flipping exception criteria, the property flipping waiver was recently extended through 12/31/14
While the waiver is designed to assist in the sale of excess inventory due to foreclosures, it is not limited to only foreclosed properties. Not all lenders will lend on properties that are being flipped within 90 days of purchasing them if the appreciation on the property is greater than 20%. Primary Residential Mortgage is one of the few lenders allowing less than 90-day flips on FHA loans. Two appraisals will be required and a home inspection will be required.
If you have more questions or would like to apply for an FHA loan in Delaware, Maryland, or Pennsylvania give us a call at 302-703-0727 or you can APPLY ONLINE.
John R. Thomas – NMLS 38783
Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
248 E Chestnut Hill Rd, Newark, DE 19713