According to Housing Wire, The Federal Housing Administration will suspend its anti-flipping rule for a second year.
In order to accelerate the sale of foreclosed homes to investors, the Department of Housing and Urban Development lifted the 2003 ban that prohibits the FHA from insuring a mortgage on a home that was owned by the seller for less than 90 days.
Not all transactions qualify for the exception however. There cannot be a shared interest between the buyer and the seller, and the waiver does not qualify for reverse mortgages.
This bending of the rules will enable borrowers, especially first-time buyers, to purchase even more affordable properties.
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