ReCasa Financial Blog
FHA officials have reported that the federal agency will be discontinuing their 2010 waiver for short term financing
for flips
. Before this short term financing waiver, real estate investors
had to own the residential property for at least 90 days before reselling to a new buyer at a higher price. With the 90 day waiver in place, the FHA mortgage allowed real estate investors to flip properties
as quickly as possible. After December 31, 2014, the 90-day standard will be put back into effect.
This 90 day waiver was put in place to help restore neighborhoods after the recession. Since 2010, the waiver helped rehab and resell at least 102,000 homes, encouraged billions of dollars in investments , steadied sale prices, and supplied homes for first time owners. FHA will be terminating the waiver as its purpose has been fulfilled. Officials are fearful that if they keep it available, history will repeat itself.
This 90 day reinstatement could create some hiccups for real estate investors and could increase purchase prices for buyers. For real estate investors who can easily rehab a property under 90 days, it will become more expensive with additional holding costs – maintenance, utilities and taxes – which will later be put upon the buyer and will increase purchase prices.
ReCasa Financial Group ’s is a private lender with no 90 day restriction. ReCasa offers a rehab loan program with 100% financing for the purchase, improvements and soft costs on 1-4 family non-owner occupied properties. Call today – 614-221-6770.
The post FHA Reinstating 90 Day Resell Regulation on Short Term Financing first appeared on ReCasa Financial Group.
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