The Department of Housing and Urban Development otherwise know as HUD has just suspended its not flipping rule for one year. What is a “flip” in real estate speak – it simply refers to a transaction driven by an investor that is buying a home typically for a quick resale at a profit.
Up until now a buyer using an FHA loan (the FHA is part of HUD) has been unable to purchase a flipped home until the title to the home has been held by the current seller for a minimum of 90 days. It is quite common for an investor to purchase a home, then make some minor improvements over a period of a few days or weeks and then turn around and sell it.
Now, effective February 1, 2010 HUD is making it acceptable for people using FHA loans to buy Las Vegas Real Estate for a period of one year.
But, buyers be aware not all lenders will support this type of a Las Vegas Real Estate transaction – it’s important to talk with your lender before attempting this type of a transaction. We think this is good news overall, for both the investor and purchaser of Las Vegas Real Estate.
