FHA’s 90-day Property Anti-Flipping Rule

FHA home loans

In January, the Department of Housing and Urban Development (HUD) instituted a one-year moratorium on the FHA’s 90-day anti-flipping rule. As a result, beginning Feb. 1, buyers could use FHA-insured financing to purchase properties resold through private developers and investors, providing access to a broader array of recently foreclosed properties. Under the temporary waiver all transactions must be arm’s-length, and most properties will require additional documentation of improvements and justification of the price increase. Additional documentation may include a second appraisal and a property inspection ordered by the lender. Read more