Good news if you have clients who are FHA borrowers. The FHA has extended its temporary waiver of its “anti-flipping rule.” The original waiver, which was passed as the direct result of C.A.R.’s leadership efforts, was set to expire at the end of last month, but now will be extended through the remainder of 2011. The ruling allows investors who acquire foreclosed properties at below-market value to be exempted from waiting the customary 90 days before reselling them. The 90-day waiting period originally was put in place to protect FHA borrowers against predatory practices of flipping where properties were quickly resold at inflated prices to unsuspecting borrowers. First-time buyers have responded overwhelmingly to the opportunity to buy “move-in ready” renovated homes with low down payments, prompting the extension.
If you work with condominium buyers, you’ll want to know if the condominiums in your area are approved and eligible for an FHA loan. C.A.R.’s subsidiary, REBS®, has introduced Clarus FHA Approval™ Eligibility Check, which offers a unique searchable database that will allow you to quickly determine FHA loan eligibility via a simple property address search. Using this service, you and your FHA clients can avoid failed transactions and non-recoverable costs due to undetermined FHA loan eligibility status. C.A.R. has negotiated special discounts for its members.
You’ll also want to let the condominium associations in your area know that HUD now requires that an entire condominium development be preapproved before an FHA loan may be granted. FHA loans currently represent almost half of all new mortgages nationwide, and failure for a development to be preapproved to be eligible for FHA loans will almost certainly impact the marketability and value of the development. Clarus FHA Approval™ also offers Approval Services to assist condominiums in seeking HUD approval. Discounts are available to condominium associations referred by a C.A.R. member. For more information about both Clarus FHA Approval™ services.