HUD Changes 90 Day Policy for Fix and Flip Investors.
Real estate investors in Dublin Ranch who have a desire to fix and flip homes or condos just got a HUGE favor from the US Department of Housing and Urban Development: they no longer have to wait 90 days from their date of purchase to sell a flip property to an FHA buyer!
Before this change, if you purchased a home — regardless of condition — you had to wait for 90 days to be able to sell it to an FHA buyer.. With so many buyers today qualifying to purchase through FHA financing, this wiped out a significant portion of prospective buyers. I’ve never understood this rule in the first place, and I’m glad to see it go. The reality is, a recently re-habbed house with good disclosures is probably one of the best-quality homes on the market. For an investor to have to risk vandalism and higher holding costs to allow a sale to an FHA buyer is just plain silliness.
But this new development is not a permanent change. It is effective for homes purchased after February 1, 2010 and is good for one year unless the FHA Commissioner decides to extend it. There’s some additional conditions that go along with the new waiver; to see them, check out the press release from the HUD website.
If you’re interested in putting our team to work to find fix-and-flip homes for you to invest in, we’d love to hear from you. We’ve done this quite a bit and are well-experienced in what to look for to maximize your profits.