According to Banker & Tradesman, the Obama administration approved the Federal Housing Administration program that permits buyers to obtain FHA loans to purchase flipped homes. The idea is to allow investors of foreclosed properties, also known as flippers, to “enables our borrowers (FHA borrowers), especially first-time buyers, to take advantage of this opportunity and buy a home that has recently been rehabilitated, said FHA Commissioner David Stevens.”
The theory by extending this program is to aid the ailing housing market by moving foreclosed properties off the market, which should help neighborhoods that have seen several foreclosures in their backyard. So far, the FHA program has moved more than $3.6 billion of properties that were rehabbed by companies that specialize in flipping properties. This is great news for the real estate market, homeowners, companies that rehab homes and consumers by allowing buyers to get financing through the FHA program to purchase recently rehabbed homes.
The theory by extending this program is to aid the ailing housing market by moving foreclosed properties off the market, which should help neighborhoods that have seen several foreclosures in their backyard. So far, the FHA program has moved more than $3.6 billion of properties that were rehabbed by companies that specialize in flipping properties. This is great news for the real estate market, homeowners, companies that rehab homes and consumers by allowing buyers to get financing through the FHA program to purchase recently rehabbed homes.
