OfflineThe FHA has decided to ease up on some of the requirements on Flipping properties that would be FHA Insured.
See the article at http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
__________________
The FHA has decided to ease up on some of the requirements on Flipping properties that would be FHA Insured.
See the article at http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
How does this apply to re investors such as myself?
Full article found on: http://www.washingtonpost.com/wp-dyn/content/article/2010/01/28/AR201001...
Answer:
"What's the significance of the 90-day timeline? It's huge, say investors who specialize in acquiring and renovating foreclosures and bank-owned properties. Paul Wylie, an investor active in the Los Angeles area, says his group generally can acquire and rehab a house and list it for resale within 60 days.
"When the price jump exceeds 20 percent, the FHA expects participating lenders to require extensive documentation of the renovation expenditures made by the investors to justify the hefty price increase. Lenders also are required to order an independent property inspection so the purchaser can understand the house's physical condition and the improvements made.
"The takeaway for buyers and investors: Check out FHA financing early in the game on foreclosure turnarounds."