FHA has extended the temporary property flipping waiver announced in 2010 to December 31, 2014. This temporary waiver removes the restriction that prohibits FHA financing of properties being sold within 90 days of seller acquisition.
Through the regulatory waiver, FHA encourages investors that specialize in acquiring and renovating properties to renovate foreclosed and abandoned homes, with the objective of increasing the availability of affordable homes for first-time and other purchasers, helping to stabilize real estate prices and to stabilize neighborhoods and communities where foreclosure activity has been high. The waiver is applicable to all single family properties being resold within the 90- day period after prior acquisition, and is not limited to foreclosed properties. Additionally, the waiver is subject to certain conditions, and mortgages must meet these conditions to be eligible for the waiver. The waiver is not applicable to mortgages insured under HUD’s Home Equity Conversion Mortgage (HECM) Program.
For additional information, refer to the Federal Register Notice .