FHA Program for Flipping US Houses Extended

The FHA – Federal Housing Administration are extending throughout 2011 a popular program allowing buyers of flipped homes to obtain loans

However as usual these days in the States a dichotomy which may scupper this program is that folks in America have little or zero confidence in the US home market

Reuters published more details here – quote – Flipping refers to the practice of buying a home and quickly reselling it in order to make a profit. The FHA in 2003 banned buyers from obtaining government-backed mortgage insurance on homes they bought less than 90 days after a previous sale.

The FHA temporarily lifted the ban a year ago to help investors sell foreclosed properties in an effort to aid the depressed housing market. That waiver was set to expire on Monday.

“This action enables our borrowers, especially first-time buyers, to take advantage of this opportunity and buy a home that has recently been rehabilitated,” said FHA Commissioner David Stevens.

“It will also help to move more foreclosed properties off the market and reduce the number of vacant homes in neighborhoods throughout this country,” he added.

The FHA has insured more than 21,000 mortgages worth over $3.6 billion on properties resold within 90 days of acquisition since last February, when the waiver was first issued, the agency said.

‘Joe Public are waiting for an upturn in  US Housing Market – they could have a long wait!’

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