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 January 20, 2009

Feds Suspend Anti-Flipping Rule
Good news for buyers: Starting February first, the FHA is putting a year long moratorium on the home flipping rule, so buyers can purchase homes that have been flipped within a ninety day period. How it stands now, buyers cannot get a FHA loan if the property has been owned for less than three months (usually an investor owned property that was recently purchased, updated and put back on the market). The moratorium will help new buyers have a better selection of homes and compete with other buyers.
Buyers who need FHA backed loans rarely have a large down-payment or the cash on hand to repair a “fixer upper” home. The flipped home is often a nice solution for this kind of buyer who wants an updated home in good repair. The moratorium will increase the opportunities for buyers to find a better selection of updated homes while allowing them to obtain FHA financing.

The other good news for buyers is the housing affordability is better than it has been in years, the interest rates remain at historic low rates and the tax credit was extended to 4/30/10. Some of the mortgage analysts are predicting the rates will increase to approximately 5.5% percent by midyear and up to 5.75%-6% by the end of the year.