Ok all you savvy investors and scrupulous buyers… here is the news you have been waiting for.  FHA has lifted the 90 day anti-flipping rule temporarily! In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan announced Friday a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties.

Is it time to get the party started?  Could be… investors have basically been granted an exemption to the 90 day seasoning rule (with restrictions of course).  Otherwise known as the anti-flip rule.  They determined that properties take less than 90 days to rehab (huh, what genius figured that out)  and making buyers wait increases holding costs thus making the properties less affordable and increasing the chance of vandalism due to vacancy.

The waiver goes into effect February 1, 2010 and will last for one year through February 1, 2011.

Here comes the fine print:

1. All transactions must be arms length so no selling properties to your Mom, Brother, Aunt or Uncle :)

2. If you’re selling for more than 20% of your acquisition cost, you must justify the value by providing documentation of your repairs and/or a second appraisal.

Click Here to read the press release

Click Here to read the full waiver

I for one think this is fabulous news!  Tell me what you think – leave a comment below.  Thanks!!!

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