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Expiration of the Federal Housing Administration’s Property Flipping Waiver

Dear Licensed Partner,

The Federal Housing Administration‚Äôs (FHA) Office of Single Family Housing announced that the temporary waiver of FHA‚Äôs regulation that prohibits the use of FHA financing to purchase single family properties that are being resold within 90 days of the previous acquisition, expires on December 31, 2014. 

The FHA flip waiver applies to all sales contracts executed on or after February 1, 2010 until 11:59 PM, December 31, 2014. Mortgages that are made on properties in which sales contracts have been executed after 11:59 PM, December 31, 2014, are not eligible for FHA flip waiver program as per the FHA Info #14-73.

However, there are a few exemptions to the FHA flip guidelines as per Section 203.37a(c). The exempt transactions include:

  • Properties acquired by an employer or relocation agency in connection with the relocation of an employee
  • Re-sales by HUD under its Real Estate Owned (REO) program
  • Sales by other United States Government agencies of single family properties pursuant to programs operated by these agencies
  • HUD REO properties that were purchased by non-profits at a discount with re-sale restrictions
  • Sales of properties that are acquired by the seller through inheritance
  • Sales of properties by state and federally-chartered financial institutions and government sponsored enterprises
  • Sales of properties by local and state government agencies
  • Sales of properties within Presidentially Declared Disaster Areas
Sun West will not accept 90 day flip transaction in which sale contracts have been executed after 11:59 PM, December 31, 2014, as these mortgages are not eligible for a waiver of the regulation prohibiting property flipping.

If you have any questions, please contact your Client Relations Manager at (855) OK SUNWEST or (855) 657-8693.

Sincerely,

Sun West Mortgage Company, Inc.
18000 Studebaker Road, Suite 200
Cerritos, CA 90703
Phone: (800) 453-7884
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Equal Housing Opportunity This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.




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