How Did the Flip Rule Work?

Why Did FHA Change their Mind About Flip's?

Conditions That Need to Be Met for the FHA Waiver of 90 Day Flip Rule

• <:od>All transactions must be "arms length" with no relationship between the buyer, seller, or other parties taking part in the sale of the property. The lender will need to verify the chain of title for the property to make sure there has not been a pattern of flipping over the past 12 months. Also, the property must of been marketed openly, either on MLS, For Sale By Owner, or some other means.
• The sales price cannot be more than 20% above the sellers purchase price without meeting additional conditions. If the property is being sold for more than 20% above the sellers purchase price, the lender may require an additional appraisal and property inspection. The lender needs to make sure there is a legitimate reason the property is valued 20% higher than the recently acquired price.
• The 90 Day No Flip Rule waiver is only for the "forward" FHA loan program. The waiver will not effect the Reverse Mortgage, or HECM in Orange County.

Not only Orange County First Time Home Buyers, but also real estate investors will benefit from their waiver. First time buyers will have more homes to make offers on, and investors will have more buyers to potentially sell to. FHA is just about the only loan program available for home buyers that allows a down payment of less than 10%. FHA only requires a 3.5% down payment, and the down payment can be a gift. The first thing an Orange County First Time Buyer needs to do is talk with an Orange County FHA loan officer who can prepare loan scenarios based on your qualifications and goals.