Florida FHA Loans: FHA Reversal of Anti-Flipping Rule Means Big Business for Florida Market
By: Michael Klein
TAMPA, FL — Feb. 12 (FreeRateUpdate.com) – Although February 1st has been good to us in the past (witness the births of the cultural icons Pauly Shore and Rick James), we now have something in the financial realm equally 
as important commencing on that very date. And while the FHA reversal of the anti-flipping rule might just last for a year (witness the orbit of Pauly Shore’s fame) the repercussions stemming from its employment could very well last for years to come for thousands of potential Florida homeowners.
It’s no secret that Florida is a hotbed of foreclosure activity these days. Largely as a result of this the present real estate market is a fantastic opportunity for anyone wanting to purchase an undervalued property in a highly desirable location, be it a first-time homebuyer, investor or snowbird. One of the roadblocks up to this point is that investors were not able to purchase, renovate and sell any of these bank-owned properties to a buyer requiring financing without being able to prove 90 days of ownership.
Reversing this rule will entice more investors to get in the game knowing they have a larger pool of prospective buyers and that they will not be forced to hold on to their investment for a longer timeline than might be manageable for their interests. This will also allow them to hopefully invest those profits
quickly into a subsequent property.
As FHA loans still require just a 3.5% down payment, opportunity knocks for those looking to purchase but lacking sizable assets. And for those able to go under contract by April 30th and close by June 30th the 8K tax credit is a huge incentive towards home ownership. Many of the recent transactions I have been involved in have allowed my clients to actually drop their monthly housing expenses by several hundred dollars when compared to the rent they were paying beforehand. Rather than toss out the well worn phrase “this is THE time to buy” let’s just say that there have been a lot worse times in recent memory to be actively involved as a buyer in the Florida real estate market.