FHA waives the 90-day "no flipping rule"
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;color:#17365D'>Yes,
that's right! The FHA is waiving the 90-day 'no flipping rule'
which prevented many investors from purchasing distressed homes and then either
immediately or in some circumstances before they actually close title selling
the property to another buyer. This practice is referred to as "flipping"
and the buyer is called an "end buyer". The waiver takes effect on
February 1, 2010 and is limited to those sales that meet specific conditions.
Eliminating FHA financing almost ended investor interest in distressed
properties due to the fact that today more than 45% of new mortgage loans
originated are FHA loans. Here is my interpretation of the Waiver: First; all
transactions must be arms length, with no identity of interest between the
buyer and seller or other parties participating in the sales transaction.
Basically no inappropriate collusion or agreements between the parties. The
seller must hold title to the property so therefore the investor must close
title on the property before title is taken by the end buyer. An LLC,
Corporation or Trust must operate in accordance with state and federal laws.. No
previous flipping activity within a 12-month time frame. The property was
marketed openly and fairly. Second; if the end buyer sales price is 20% more
than the seller's acquisition cost, condition apply. The end buyer's
lender must have supporting documentation and/or another appraisal which
verifies that the seller made sufficient legitimate renovations, repairs, and
rehabilitation work to the subject property that substantiates the increase in
value. The lender must order an inspection and provide the inspection report to
the buyer before closing. Third; the waiver is limited to forward mortgages,
and does not apply to the Home Equity Conversion Mortgage (HECM) Program.
color:#17365D;mso-no-proof:yes'>Nancy Gray
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Nancy T. Gray
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Broker-of-Record
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mso-fareast-font-family:"Times New Roman";color:#17365D;mso-no-proof:yes'>>> CENTURY 21 At The Shore
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mso-fareast-font-family:"Times New Roman";color:#17365D;mso-no-proof:yes'>> President Elect
OC-WCR
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732.606.9002
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mso-fareast-font-family:"Times New Roman";color:#17365D;mso-no-proof:yes'>> Century21AtTheShore.com
Selling, Renting we can
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A New Venture
I am the Broker-of-Record at Century 21 At The Shore Realty and we are very excited about the next five months. Earlier this month the United States Senate and then President Obama extended the Tax Credit and now it not only benefits the first time home buyer but also current homeowners. You will have to have a legally binding Sales Purchase Contract before April 30, 2010 and close title on the purchase no later than July 30, 2010. This extension and added provision of the tax credit combined with the lowest mortgage interest rates in 40 years makes this the best time ever to purchase a home. The tax credit considers a first time home buyer as a tax payer who has not claimed a home in the past three consecutive years on their Federal and State Tax Returns. The best news about the new provisions added to the tax credit is for existing homeowners and the caveat is you must have claimed the hone for five consecutive years out of the past eight years and it isn’t necessary to “move up” meaning that you won’t have to purchase a more expensive home. This is really terrific news as it has opened doors for many sectors of potential buyers like someone looking to retire or downsize and there is a need for this type of purchase as the baby-boomer population retires and or the empty-nesters enter the buying market.
We do think that Ocean County in New Jersey is an obvious choice for not only the first-time-homebuyer but the baby-boomer and the empty-nester as well. Our housing is very diversified as well as comfortable and affordable price ranges.
Visit our website at http://Century21AtTheShore.com and view ALL properties available in Ocean & Monmouth Counties in New Jersey. Also we do have several articles posted on the site that explain in more detail the information on the provisions of the tax credit.
