The Federal Housing Administration announced today it has extended its temporary waiver of FHA anti-flipping regulations through 2012. The extension was first made in 2010 in an effort to continue stabilizing home values and improve conditions for areas of high foreclosure, FHA said. Home Equity Conversion Purchase Mortgages are not included under the waiver, however.
“This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight,” said Carol Galante, acting commissioner of FHA. “FHA remains a critical source of mortgage financing and stability and we must make every effort that to promote recovery in every responsible way we can.”
FHA typically prohibits insuring a mortgage on a home that is owned by the seller for less than 90 days, but the waiver allows for insurances on purchases owned for shorter periods of time.
The waiver is limited to forward mortgages, however, and does not cover the HECM for purchase program.
View the waiver.
Written by Elizabeth Ecker