If you're looking to purchase a home using an FHA backed loan OR you want to purchase a home to renovate and sell (also known as a fix and flip), this is GREAT news!
You might want to know what the rule was to start with. Well, if a person purchased a home, they could not sell that home to a buyer who was using FHA lending for at least 90 days. This was to prevent people from buying, increasing price for financing, then selling to "a friend" etc. to pull cash out of the home. This was leading to over-inflated home prices in the past. Now, however, we need investors to buy damaged homes and fix them up for resale. The waiver was severely hampering these investors, thus, stalling the home market recovery and shutting FHA buyers out of the newly renovated homes.
In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, such as Arizona, HUD Secretary Shaun Donovan today announced a temporary waiver of the 90-day FHA waiting period. Many times, it doesn't take someone 90 days to repair a home for resale.
"This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.
The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.
The waiver will take effect on February 1, 2010 and is effective for one year. This waiver is limited to those sales meeting the following general conditions:
Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD's website.
If you’re considering buying a home in the Valley and don’t know where to begin. You should really consider the West Valley: Glendale, Peoria, Surprise. I really think home values are stabilizing and these areas should be among the best for resale in the future. One reason is the tourism trade. This brings with it JOBS!
The recession has hit The Valley pretty hard, everywhere. Housing prices are down, foreclosures are up, commercial property sits vacant and people are losing there jobs. OK, pretty depressing. However, there is a bright spot: tourism in the West Valley.
The region was the only metro area in the Valley to have a month of positive growth in hotel occupancy compared with the previous year, Smith Travel Research reports. Hotels west of Interstate 17 were at 75.2 percent capacity in March, a 4.6 percent boost from the same month in 2008.
A large part of this can be contributed to baseball’s spring training in Glendale, Goodyear and Surprise.
"Spring training definitely has an influence," said Bobby Bowers, senior vice president of operations at Smith Travel Research.
Glendale particularly stood out for tourism growth in 2009, even as travelers shortened trips, hunted for bargains and canceled vacations.
The city saw an 8.9 percent jump in hotel stays from January to November compared with the same period a year earlier, including the rooms booked for Super Bowl XLII in 2008.
Other sports, such as college bowl games will also lend a boost to the economy. Fiesta Bowl numbers are expected to be quite high for businesses around the University of Phoenix Stadium in Glendale. Restaurants, sport memorabilia stores, hotels, rental cars etc. should all see a good business this week.
The Chicago White Sox and Los Angeles Dodgers, the two teams occupying the spring-training stadium that Glendale built on land it owns in west Phoenix, are known for having lots of fans who travel to see their teams warm up before the start of the regular season. Snowbirds from these areas often buy their homes with this in mind.
" The Glendale Visitor Center may soon turn into a full-fledged convention and visitor bureau, Pino said, if the number of visitors and business travelers to the city continue to surge.
Arizona Cardinals games at University of Phoenix Stadium and concerts at Jobing.com Arena also boosted hotel business, even though SpringHill Suites by Marriott is 9 miles north of the sports and entertainment district, at 78th Avenue and Bell Road, general manager Mina Bermudez said.
"We can have a really slow week, and then something's happening at University of Phoenix Stadium and we're booming," she said.
Although we have great events to draw in tourists, hotel rates were cut to make it even more attractive.
The average cost per night in 2009 was $106.44, down 15.4 percent from the 2008 average of $125.76, according to Smith Travel Research This is a smaller rate cut than other parts of the Valley, such as Scottsdale, but still quite considerable.
We have a lot of great things to do in Arizona. Come out and join us in the Valley of the Sun. If you’re interested in a vacation home or relocating to Arizona. Don’t hesitate to call or email me for information!
Have a wonderful day.
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