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Office Location 18902 89th Ave E
Puyallup, WA 98375
Phone: (253) 820-2745
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90 Day FHA Anti Flipping waiting period waived

Posted by Brett Tousley on Friday, June 4th, 2010 at 1:37pm.

The 90 day FHA Anti Flipping rule has been temporarily suspended by HUD to allow investors increased opportunity in the current housing market.  The current moratorium runs from Feb 2010-Feb 1011 and provides a more equal opportunity for investors to profit from the large amount of distressed homes currently available in Tacoma.

What anti flipping rule? 

If you aren't an industry insider or an experienced real estate investor you may not have been aware of the 90 day waiting period for a home to be for FHA financing eligible.  Basically, the rule was put into affect during the run up to the bubble and kept investors from buying a property and reselling it in a short period of time to a buyer using FHA financing. 

Good or bad for the Pierce County housing market? 

Given that many of the active home buyers in the current real estate market are using FHA financing, I'd say this waiver is much needed relief.  Real estate investors in Pierce County now have access to a larger pool of potential buyers for their rehabbed homes.  The 90 day waiting period added significantly to the carrying time and costs for investors.

Buyers can benefit from a larger pool of homes to choose from in better condition than many bank owned or distressed houses.  Not every buyer is willing to take on the job of rehabbing a distressed home, many would prefer a move in ready home at a slightly higher price.

Neighbors can also benefit when a good rehab investor moves into the neighborhood.  A good real estate investor can turn the neighborhood eye sore into a gem over the course of a few weeks.  Let's face it, we're all getting tired of seeing foreclosures sit vacant in our neighborhoods aren't we?

Should you try to flip a home?

The short answer is probably NOT!  Unless you have a strong construction or investment background it's a perilous way to invest in real estate.  Not all flipped homes sell and those that do sell, don't always sell quickly or for the price you were hoping for. 

Should you buy a home that has been flipped?


Just because everything looks shiny and new doesn't necessarily mean all is well with the home.  The anti flipping rule was put into place for a reason.  During the heat of the market, I saw plenty of shoddy flip attempts.  Most of those "investors" have long since gone broke, but be careful out there.  You need to know what to look for and make sure you hire a good honest home inspector.  New appliances, paint and carpet can hide a lot of flaws if you aren't careful.

Overall, I think this waiver will be good for our Tacoma real estate market, but only time will tell.



Brett Tousley is the designated broker and owner of NW Home Brokers.  He can be reached at 253-820-2745 or broker@nwhomebrokers.com

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