If you have ever been interested in house flips and how the FHA treats them, this is the article as we will go over the 2016 FHA Guidelines On Buying House Flips. To start with the 2016 FHA Guidelines On Buying House Flips requires a minimum of 90 day waiting period for a home owners to be able to sell their home to a borrower who is only buying the home with an FHA Loan. Before the large real estate and mortgage collapse of 2008 that kicked off the Great Recession, property flipping was extremely popular and very lucrative given the sky-rocketing property values that were taking place. However, once 2008 property flipping came to an almost immediate halt and the backlash was full of people going through foreclosures, deed in lieu of foreclosure, bankruptcies, and short sales. When this came to a halt, it put a lot of construction workers out of a job because these “professional” house flippers employed huge crews who would remodel houses in 30 days or less and have multiple projects and properties going at once.
These days the 2016 FHA Guidelines On Buying House Flips has changed the way a property can be bought and subsequently sold. The 2016 FHA Guidelines On Buying House Flips states that if an FHA buyer is looking to purchase a house flip, they must wait until the property is at least 90 days old with the current owner. This really puts a damper on the possibility for getting into the property flipping industry because if you can get a house done within 30-45 days after purchase, you automatically know an FHA buyer can’t buy the home for 45-60 days. You are essentially cutting off the most popular loan program in the United States because of a mandatory waiting period for FHA buyers per the 2016 FHA Guidelines On Buying House Flips.
As mentioned earlier, before the Great Recession occurred in 2008, house flipping was a major career for a lot of people. As you have always been taught since you were a child was that home values can only go up and a home is a sound investment. No one could have ever seen this happening, and the market was so saturated with “professional” house flippers that once the market collapsed, most investor portfolios were destroyed and they saw most of their properties fall into foreclosure. Now as the market has stabilized, there really isn’t a need for the 2016 FHA Guidelines On Buying House Flips, but this is the hand FHA has dealt us. There should not be a mandatory waiting period for FHA buyers who are looking to purchase a home especially with the increased requirements and underwriting procedures needed for homes these days. Gone are the days of no-document or minimal document loans for people who had no right to purchase a home to begin with. All I can say is the investors will feel this pinch when trying to sell their homes when a huge part of their potential buyers aren’t able to purchase the home. If you are an FHA buyer who is looking to get a pre-approval for your next home loan, please give me a call or visit my website and we can work on getting you in the right position when the time is right. Call me at 888-900-1020, email at firstname.lastname@example.org, or visit my websites www.loanconsultants.org.