No More Pre-90 Day FHA Flips?

[Steve L.]

I just got an emailed from a lender i work with:

Has anyone else heard the same thing? Probably will shy investors away even worse.

[J Scott]

@Nick -

My guess is that until there is something official to say (either the waiver expires or is officially extended) they won't publish anything official. Could be days before (or after) the expiration date before we actually hear anything official.

@Jimmy -

There are a couple reasons:

1. Many people (even real estate professionals) don't understand the nature of a rehabber's business, and they assume that we are all a bunch of scam artists looking to take advantage of buyers; and

2. There have been many rehabbers/flippers over the past several years who have fit the definition above and have given all of us a bad name. In addition, in some areas, there was a tremendous amount of mortgage fraud committed by rehabbers, and the stigma affects the rest of us today.