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FHA extends loan program for ‘flipped’ houses

Mon, Jan 31, 2011

News

The Obama administration extended for another year a program that allows buyers of flipped houses to obtain Federal Housing Administration-backed loans.

Last year, the FHA lifted a ban that prevented buyers from obtaining government-backed mortgage insurance on homes bought less than 90 days after a previous sale.

The ban, which was in place to prevent speculative homebuying and selling, was set to go back into effect on Monday.

The administration hopes that lifting the ban for another year will help the housing market churn through the massive amounts of foreclosure inventory.

Read more here.

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1 Comments For This Post

  1. Kathy Torline Says:

    It’s important to understand the fine print on the “flipping rule”, as it’s not quite as attractive to investors who flip houses as it may seem at first glance.