Monday, January 25, 2010

On Your Mark; Get Set; Become a House Flipper

Effective February 1st, 2010, real estate buyers will be able to use previously restricted FHA loans to purchase properties that sellers have owned for less than 90 days.

The policy change, which will temporarily remove restrictions on FHA-insured financing, is intended to expand mortgages to “flipped” properties, distressed properties which were purchased by the sellers to remodel and sell for a higher price. The intention of lifting the restriction is to promote an increase in home purchases and reinvigorate communities that have been negatively impacted by mass foreclosures. This could be a great opportunity for individuals who want to try their hand at real estate investment, since it will significantly open the buyer pool now that FHA financing is applicable.

You can read the official press release by the US HUD Department and full details here.

1 comment:

Richard Stabile Bergen County Real Estate said...

That's great! I wrote in 2008 that the Fed should allow investors friendly access to their loan pools. they had open up to 10 loans allowable for one investor. Now they have made it financible to buy a flipped home. This is important so that pool purchases and remodeled homes can be worked to improve the houaing stock.