FHA waives 90-day waiting period for resales

A one-year waiver of HUD's anti-flipping rule as applied to properties by a mortgagee was signed on June 9, 2008.

Under the anti-flipping rule, a borrower may not purchase a property with an FHA insured loan if the property was acquired by the seller in the previous 90 days. This rule intended to prevent property flipping, but the rule also had been preventing certain mortgagees from promptly disposing of REO property to borrowers with FHA-insured mortgages.

Under this waiver, FHA financing will be made available to borrowers who purchase properties that have been owned for fewer than 90 days, if the properties were acquired through foreclosure by mortgages that are not state or federally chartered financial institutions.

To view the official signed document Click Here

See below for a link to the news release