In today’s issue of the Federal Register (76 FR 6149), the FHA published notice that it is extending its temporary waiver of its property flipping regulations (see 24 CFR §203.37a) until December 31, 2011. Pertinent parts of the notice are reprinted below: Waiver This notice announces that FHA is extending the availability of the temporary waiver of its regulation that prohibits the use of FHA financing to purchase single family properties that are being resold within 90 days of the previous acquisition, until December 31, 2011. This waiver, which was issued in January 2010, took effect for all sales contracts executed on or after February 1, 2010, and is set to expire on February 1, 2011. Prior to the waiver, a mortgage was not eligible for FHA insurance if the contract of sale for the purchase of the property that is the subject of the mortgage is executed within 90 days of the prior acquisition by the seller and the seller does not come under any of the exemptions to this 90-day period that are specified in the regulation. … [T]he waiver is applicable to all single family properties being resold within the 90-day period after prior acquisition, … [a]dditionally, the waiver is subject to certain conditions, and eligible mortgages must meet these conditions to take advantage of the waiver. … Although no changes are made to the conditions to which the waiver is subject, this notice also includes guidance on the waiver conditions in response to questions that have arisen from time to time during the first year in which the waiver was made available.
