FHA 90 day rule Suspended?!!?

[Derek W.]

I saw this and got so excited that they finally suspended the anti-flip law. But after further reading I think it just applies to the NSP program and not to general investors. How do you read it?

On Friday, FHA announced the suspension of the anti-Flipping 90-day waiting period.Prior to September 14, 2009, FHA products were denied to buyers purchasing homes from investors that buy homes, rehab them, and sell them within a 90-day period. Previously, the only option to purchase these homes was through conventional financing (which requires a higher down payment) or a cash-only purchase.This revision allows homebuyers to expand their market when searching for a home and gives them the opportunity to secure a much lower down payment. More investors and buyers will be encouraged to purchase homes due to this major change.

Take a look at the revision:Section 203.37a(b)(2) of the FHA regulations, 24 CFR, is hereby waived for a period of one year, September 14, 2009 through September 13, 2010, with regard to sales of previously foreclosed or abandoned properties acquired and resold by for-profit and non-profit entities using funding from and performing under agreements with state and local government agencies under the NSP program.http://www.hud.gov/offices/hsg/sfh/waivpropflip.pdf