FHA Flip Rule Extended

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.

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About nickseevers

A Sacramento, CA Real Estate Agent at Triple Crown Realty who loves college football and politics.
This entry was posted in Buyer, Real Estate, Sacramento, Tips. Bookmark the permalink.

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