Fortunately for FHA buyers the “flip rule” has been extended again.
What this means for you, the buyer. The best news is, if you are looking to buy a home with an FHA loan (3.5% down) you can purchase flipped homes as soon as they hit the market, as opposed to having to wait 3 months to buy a home you love.
Beyond not having to wait to purchase a home, a flipped home offers many benefits (as anyone who watched HGTV or any of the other home TV networks can tell you). Having a remodeled home, while perhaps costing more then a home in need of repair, allows a home to be FHA-insurable. While a buyer can get an FHA 203k loan, that requires the buyer to hire a contractor and have the work done on their own, not to mention the appraisal process that goes along with the 203k loan is more of a nuisance then purchasing a flipped home.
If you are a buyer looking to purchase a home with little money down, I highly recommend using an FHA loan and thanks to this extension you can buy a remodeled home with 3.5% down.