FHA extends anti-flipping regulation for 2012
Posted on Friday, December 30, 2011 at 11:07:45 PM
The Federal Housing Administration (FHA) decided to extend the anti-flipping regulation for the year of 2012. This is not the first year the regulation has been extended due to the value associated with an FHA loan.
The FHA traditionally has prohibited mortgage financing and protection from the FHA by buyers purchasing homes from sellers who had owned the property for less than 90 days. This was enacted to prevent potential fraud scandals from occurring when homes were "flipped" repeatedly.
FHA mortgage income-insured loans are typically offered to buyers at a low 3.5 percent rate, according to the LA Times. Potential first time homebuyers often seek such low rates because of the new financial responsibility they will be taking on.
Since 1934 the FHA has provided mortgage insurance on loans made by approved lenders. It is a large government organization that insures mortgages on single family, multifamily homes, manufactured homes and hospitals.
A first time homebuyer may wish to consider looking into the availability of homes that allow them this financing option.