FHAs 90-day Flipping Rule to be Waived for One Year

Great news for all of you looking to invest in real estate in the city of Riverside!

You have to take the good with the bad sometimes. After battling to stomach the proposed FHA financing guidelines that will restrict scores of currently qualified buyers from buying a home, effective February 1st 2010, FHA/ HUD will not require that a seller of a property be on title for 90 days or more in order to sell the property to a borrower acquiring FHA financing.

This is commonly referred to as the 'flipping rule', and was initially put in place to fend off the rampant speculation that was in great part the fuel that fed the artificial price appreciation over the expanded sellers market of years past. From a simple economic perspective of supply and demand, that kind of aggressive and some may call abnormal real estate market, cannot be allowed to rise again from the ashes. If any lesson is to be learned from our mistakes of recent years past, it is that a normal real estate market with expected rises and dips in demand and price will help guard against housing collapses like the one we are currently experiencing.

Thinking back to all the times I was asked how long that 'hot' sellers market would last, I would often refer to the cliched expression of "The bigger they are, the harder they fall." With a twist and now dead-on interpretation of that cliche, it became more of a warning. Simply stated: "The higher they go, the further they'll fall." Believe me, I didn't feel good about being right in this case.

Nonetheless, this move by the FHA/Hud is a positive one that will no doubt help bring needed investment in to the housing market. For guidance and help towards obtaining financing and your new home in the Riverside real estate market, contact the Baird Team for the solid experience and trust that you must have from your agent.