The Federal Housing Administration has suspended its antiflipping rules for another year to facilitate financing and sales of newly renovated foreclosed properties. The Department of Housing and Urban Development issued the antiflipping rule in 2003 to protect FHA borrowers from investors who were quickly flipping properties at inflated prices.
The antiflipping rule prohibits lenders from using FHA financing to resell single-family properties within 90 days.
In early 2010, HUD first suspended the antiflipping rule because it was holding up sales of foreclosed properties. It was suspended again for all of 2011.
