Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

"From the minute you call me to the minute we close, I have your back. No hassles, no banker’s hours & quick response times." - Scott Storace

  • Home Loans up to $3,000,000
  • Interest Rate Float Down Option

Have Questions? Call 949.973.0141

FHA Flip Waiver Expires

Short-term financing is still available but, not for long!  On December 31st 2014, the FHA flip waiver is set to expire.  FHA officials say that the waiver program has served its purpose: generating billions for investors, sustaining home values and creating inventory for underserved homebuyers.  More here

FHA Returns to Anti-House Flipping Standard

FHA Returns to Anti-House Flipping Standard

In an effort to abate much of the mortgage crisis aftermath, the FHA flip waiver allowed investors to sell their rehabilitated investment properties to FHA buyers without a minimum ownership period.   Though investors still assumed a lot of risk, often purchasing homes at auction without having seen the home or taking an accurate estimate of cost to repair, the waiver served as reassurance that they could at least sell the rehabilitated home quickly.  Returning to the 90-day standard may protect future buyers from what FHA calls “inherent dangers” of purchasing a flipped property but, at what cost?  The FHA flip waiver wasn’t just a benefit to investors looking for a quick return.  It created an opportunity for many entry-level buyers.  Having to hold their properties longer, investors are sure to anticipate increased costs.  To assume that this cost will in turn be passed on to future buyers is probable.

That said, will the absence of the FHA flip waiver have much of an impact on those in Orange County?  Not likely.  Distressed inventory is at an all time, post-crisis low.  The concern, however, focuses on that entry-level buyer who might now be locked out of purchasing a flip property.  How investors respond to the absence of the FHA flip waiver is not likely to favor this demographic.  Bottom line:  The season is changing yet again and it’s time for all of us to adapt.

(Check out the Homebuyer’s Guide for more financing options, including a renovation loan). 

If you’d like more information about the FHA Anti-House Flipping Standard, FHA Waiver Expiration and/or a Renovation Home Loan call 949.973.0141 or email me at

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