FHA Agrees on Home Flip Waiver, Which is Great For Real Estate Investors in Chicago's Northwest Suburbs and Entire Chicagoland Area

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Real Estate Agent with Buyer Broker Chicagoland - CHICAGO IL AND SUBURBS

FHA approves home flip waiver - expanding pool of buyers for home flipping investorsFHA Agrees on Home Flip Waiver, Which is Great For Real Estate Investors in Chicago's Northwest Suburbs (Palatine, Schaumburg, Barrington, Long Grove, Lake Zurich, Hawthorn Woods, Mundelein, Libertyville, Wauconda, Vernon Hills, Island Lake etc.) and Entire Chicagoland Area

For the second year in a row, FHA is extending a temporary waiver of its "anti-flipping" rule.


Homebuyers relying on FHA-insured financing will continue to be able to buy homes that have changed hands in the last 90 days.

investment property, the numbers, Palatine, Schaumburg, Hoffman Estates, Barrington, Vernon Hills, Lake Zurich, Wauconda, Island LakeThe waiver is great for investors seeking to rehab and flip properties, because it expands the pool of eligible borrowers to include those relying on FHA-backed loans.

In extending the waiver through 2012, FHA said all transactions must continue to be arms-length.

In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will apply only if the lender can document the justification for the increase in value.

FHA instituted the anti-flipping rule in 2003 to protect its mutual mortgage insurance program from losses on homes that were merely flipped, rather than rehabbed.  

Homes repossessed by Fannie Mae, Freddie Mac, and state- and federally chartered financial institutions were exempt from the rule.

In February 2010, the Obama administration waived the waiting period for resales -- including homes purchased and rehabbed by private investors -- in the hopes of stabilizing home prices and revitalizing communities hit by foreclosures.

90 days FHA, invesment property flipping - Palatine, Schaumburg, Barrington, Long Grove, Lake Zurich, Hawthorn Woods, Mundelein, Libertyville, Wauconda, Vernon Hills, Island LakeIt often takes less than 90 days to acquire, rehabilitate and sell properties.   Some sellers of rehabbed properties had been reluctant to enter into contracts with FHA buyers because of the cost of holding a property for 90 days.Chicago's Northwest Suburbs (Palatine, Schaumburg, Barrington, Long Grove, Lake Zurich, Hawthorn Woods, Mundelein, Libertyville, Wauconda, Vernon Hills, Island Lake

If you are an investor thinking about purchasing investment property in Chicago's Northwest Suburbs (Palatine, Schaumburg, Barrington, Long Grove, Lake Zurich, Hawthorn Woods, Mundelein, Libertyville, Wauconda, Vernon Hills, Island Lake etc.)  or other areas (including downtown or western suburbs) we’ll be happy to discuss working with you.

Investors utilize our services because we have more negotiation expertise and experience than any company in the Chicago area.  Our application of “competitive intelligence” to the negotiation process (a specialized expertise) is something that no other agent / company in the Chicago area offers.

If you are serious about purchasing investment property in the Chicago area within the next 90 days - feel free to contact us. As an Exclusive Buyer Agent / Broker (always on the investor's side - never on the seller's side) we work with a select number of clients - so that we can provide the highest possible level of service. Our personalized research and attention pays off for you - the real estate investor.

You can use our map based investment property search by clicking here.

You can download our GPS-enabled investment property search application onto your cell phone by texting BBC to 87778.

Call 847-566-7558 or e-mail to schedule a no cost initial consultation – to determine if we would be a good fit.

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Rainer
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Amie Larsen
Amie Larsen and The Lar Team
Exit Realty Success

Thank you for the update!  I'm sure it'll be the same in Utah soon.

December 28, 2011 06:45 PM
Rainmaker
674,051
Gene Mundt
Mortgage Lender - Chicago/Chicagoland Mortgages
www.genemundt.com

Rick:  I have a transaction benefiting from this very waiver right now ... thankfully.  As you say, it keeps many buyers in the game that wouldn't be involved otherwise.  Great info to pass on here ...

Gene

December 28, 2011 10:44 PM
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Rainmaker
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Rick Hauser

ABR, CNC, CNE, GRI, SFR, Exclusive Buyer Agent-Cover Chicagoland
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