FHA Decides to Keep Funding Flips Through 2012
Jan 30, 2012 in Homeowner . 0 Comment
In order to help stabilize the housing market and home prices, the Federal Housing Agency has decided to extend their anti-flipping waiver until December 31, 2012. The Acting FHA Commissioner, Carol J. Galante, said, “This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight. FHA remains a critical source of mortgage financing and stability and we must make every effort to promote recovery in every responsible way we can.”
There are certain conditions outlined by the FHA that home sales must meet in order to be eligible for the FHA anti-flipping waiver:
-“All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.” The property should be marketed openly and fairly.
-“In cases in which the sales of the property is greater than 20 percent above the seller’s acquisition cost, an FHA-approved mortgage is eligible for the waiver only if the mortgage justifies the increase in value…and orders a property inspection.” The inspection must show that there were significant improvements made to the house.
-“Only forward mortgages are eligible for the waiver. Mortgages insured under HUD’s HECM program are ineligible for the waiver.”

