FHA "Property Flipping Waiver" Expiring

[Craig Fithian]

FHA has announced that the temporary waiver of FHA's regulation that prohibits the use of FHA financing to purchase single family properties that are being resold within 90 days of the previous acquisition, expires on December 31, 2014. The waiver applies to all sales contracts executed on or after Feb 1, 2010 to 11:59pm Dec 31, 2014.

FHA deems a sales contract to be executed when all parties have signed the contract, and the contract is enforceable under the law of the property state. Mortgages that are made on properties in which sales contracts have been executed after 11:59 on Dec 31, 2014 are not eligible for a waiver of the regulation prohibiting property flipping. FHA will not extend the waiver beyond this date.

http://www.gpo.gov/fdsys/pkg/FR-2012-11-29/pdf/2012-28918.pdf