This past week HUD announced they were suspending the 90 day rule for property flips. The financing chart I published last week showing 42% of buyers in Woodbridge (22191, 22192 & 22193) are FHA buyers, suspending this rule means real estate flippers gain back a significant number of potential buyers.
This change to HUD’s long standing “flip” policy is a great step forward to help vacant properties be listed and sold quicker. Most real estate investors working the “buy and flip” angle can have a home renovated within a few weeks. Having to hold for months cuts into the profit margin.
With our current low inventory in Northern Virginia putting these homes back into the buying pool should help first time homebuyers trying to beat the deadline for the First Time Homebuyer’s Tax Credit.
The new rule takes effect Feb 1, 2010 and is currently for only one year.