More homes will become available for first time buyers in Arizona with the 90-day anti-flip rule being suspended for one year.
Previously FHA has not allowed any property to be sold for even a dollar more than the original price plus the cost of the improvements until at least 90 days of ownership. That additional holding time had deterred many investors from the market.
With the rule suspended, many more investors will be rehabilitating properties and as such more inventory or choices should become available for buyers especially in the First Time Buyer segment. Teachers, government employees and local medical professionals will certainly benefit by combining this rule change with some of the local and state programs that are available.
“FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,” said FHA Commissioner David H. Stevens. “This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.”
To ensure FHA borrowers are protected from inflated prices, the policy has certain restrictions, including:
- All transactions must be arms-length and there can be no identity of interest between the buyer and seller.
- If the sales price of the property is 20 percent or more above the seller’s acquisition cost, the lender must meet specific conditions for the waiver to apply.
You can read the full text of the waiver on HUD.gov.
For additional information you can also read the transcript of our interview on CBS-KSWT here.
I look forward to hearing from you about purchasing and financing your home in Yuma, Somerton, San Luis and Flagstaff, Arizona.
Derek Egeberg, CMPS
The “Approval Coach”
928-246-0422
www.TheApprovalCoach.com
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