FHA Waives Fix and Flip Restrictions Through 2012!
In an effort to stabilize neighborhoods and make Phoenix bank foreclosures and HUD homes available to home buyers as repaired, beautifully remodeled and affordable Phoenix homes for sale, FHA regulations will waive prohibition of insuring a mortgage on a home owned by the seller for less than 90 days through 2012.
The new extension will permit home buyers to continue to use FHA-insured financing, currently the most popular Phoenix loan program, to purchase Phoenix bank foreclosures, HUD-owned properties, or Phoenix homes resold through private sales. It will allow homes to be resold as quickly as possible, helping to stabilize real estate prices in Chandler, Gilbert and Mesa communities and revitalize Phoenix, Queen Creek and San Tan Valley neighborhoods.
The Waiver continues to be limited to sales meeting the following conditions:
All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the Waiver will only apply if the lender meets specific conditions and documents the justification for the increase in value.