FHA Extends Anti-Flipping Rule Waiver Through 2012

On Friday, the Federal Housing Administration announced that the ‘anti-flipping rule,’ which prohibits a buyer from purchasing a property using FHA financing if the seller has owned the property for fewer than 90 days prior to the date the contract was written, has been waived through December 31, 2012.

 HUD initially waived this rule in 2010 in order to remove barriers for individuals wanting to purchase properties that were recently acquired by investors through the foreclosure sale process.  Recognizing that the foreclosure rate is still dramatically elevated across the country, HUD has taken the necessary steps to ensure that the waiver remains in place through 2012.  We expect a notice about this action to be posted on HUD.gov and/or FHA.gov soon.