Good news for Atlanta real estate investors, renovators and buyers who want to take advantage of FHA’s low down payment mortgages! The Federal Housing Authority (FHA) announced that the temporary waiver of FHA’s 90-day “anti-flipping” rule has been extended through 2014.
This extension is going to have an enormous — and positive — impact on our Atlanta real estate market andwith local real estate investors. What’s the big deal, you ask? For many, many years FHA had a rule that forbids “flipping” a home (i.e. updating/renovating a home and reselling in less than 90 days). This meant that Atlanta investors / renovators would have to hold onto a property for a minimum of 90 days in order to sell to a buyer with an FHA loan — or home buyers who qualified for FHA financing couldn’t purchase certain homes because they were recently renovated or “flipped.”
When the market was in serious decline in 2010, FHA waived the flipping rule in an effort to build single family home sales and prevent further slowdowns in housing sales. Since January of 2010, this waiver has been extended three times and now it will be waived until 2014!
The FHA flipping waiver is subject to certain conditions and FHA mortgages must meet these conditions to be eligible for the 90 day rule waiver, so if you are purchasing an Atlanta home with a FHA Loan, please make sure that your lender is aware that the property was recently renovated. Hopefully this extension this will continue to entice Atlanta real estate investors and renovators to continue improving distressed homes and neighborhoods in and around Atlanta.
Kerry Lucasse | Atlanta Real Estate Specialist
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Nest Atlanta Real Estate Group | Ian Marshall Realty – Intown
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