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FHA extends ‘anti-flipping’ waiver

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Homebuyers relying on FHA-insured financing will still be able to buy homes that have changed hands in the last 90 days, thanks to a decision by the Federal Housing Administration to extend a temporary waiver of its "anti-flipping" rule through the end of the year.The anti-flipping rule -- a 90-day waiting period implemented in 2003 to protect the FHA's mortgage insurance program from losses -- already included an exemption for homes repossessed by Fannie Mae, Freddie Mac, and state- and federally chartered financial institutions. But last year, FHA took the additional step of waiving the waiting period for all resales -- including homes purchased and rehabbed by private investors.Since the broad waiver went into effect on Feb. 1, 2010, FHA said it has insured 21,000 90-day property flip loans worth more than $3.6 billion that would otherwise not have qualified for financing.The Obama administration believes the waiver may be helping stabilize home prices and neighborhoods th...