If you like good news and happiness, check this out...

So back in January 2010 I reported (and rejoiced) that the FHA had decided to suspend the 90-day anti-flipping rule for 1 year.The now-infamous rule was originally intended to prevent shady speculators from defrauding the government, but it also stifled the purchase and renovation of foreclosed homes by legitimate investors.

Yep, dumber than a bag of hammers. But the 90 day flip rule waiver in January 2010 effectively enabled qualified buyers to once again get FHA mortgages on properties that were acquired by rehabbers less than 90 days before. Great for them, great for us, great for the economy - thanks for the bone FHA.

And now, in an effort to keep up the momentum gained by the housing market, they've just decided to extend "anti-flipping rules" suspension for at least another year to increase FHA lending. Yay for Sound Logic and Good Reason! Yep, this is (again) great news for investors trying to flip properties to FHA Buyers. But (again) keep in mind the same caveats and important nuances apply...and you really need to be aware of them if you aren't already...

The seller must hold title (no back-to-back, same day closings) You still need short-term funding.

The 20% Rule still applies.

The property still can't demonstrate a "Flipping Pattern".

It's nice to finally have something nice to say again about the FHA, isnt' it?

This allows investors to put properties back into the market place in livable conditions for buyers that would otherwise not be able to buy them nor repair them...thus helping liquidate inventory..which is good for the market and the neighborhoods that these properties are located.