FHA 90 Day Flip Rule Waived
Sunday, 07 February 2010 10:23
Robert
The 90 day flip rule has been temporarily suspended for all sellers effective February 1, 2010 and the waiver shall expire one year from February 1, 2010. This is great news for FHA Buyers as it opens the possibility for more inventory to consider. Note that the VA Flip Rule was waived earlier this year.
Pursuant to §7(q) of the Department of Housing and Urban Development Act (42 USC 3535 (q)) and 24 CFR 5.110, I hereby waive §203.37a(b)(2) of the regulations. The regulations at 24 CFR §203.37a(b)(2) provide that a mortgage for a property will not be eligible for FHA insurance if the contract of sale for the purchase of the property is executed within 90 days of the prior acquisition by the seller, and the seller does not come under any of the specific exemptions that apply to the 90-day rule.
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