Flipping Laws

[flip_it_fast]

The FHA has put in place some new laws to help protect the housing market. These news rules are to deter scammers from trying to con people looking to invest in flips.

Here are a few of the basics.

Any property sold within ninety days will not be eligible for financing with FHA backed loans like HUD insurance. Between 91 and 180 days, a record of the resale value must be shown if the reselling price is higher than the original price. If the property is selling between 91 days and 12 months, HUD may require additional documentation.

Exceptions to the rules...

* The selling of corporate property purchased during the employee's relocation.
* The selling of HUD owned real estate.
* Selling a house newly built.