HUD Flips Minneapolis Duplex Rules

getting airEither someone at HUD is really smart, or they’re reading my blog.

I’m inclined to think it’s the former.

Last week I explained many rehabbers I work with were scrambling to find houses and duplexes to buy before the end of the month so once repairs were completed, they would have owned it the required 90 days in order to be able to resell it to an FHA buyer before the tax credit deadline.

This same waiting period often prohibited FHA insured buyers from acquiring some bank and HUD owned properties.

On Friday, HUD Secretary Shaun Donovan announced a temporary policy lifting the 90 day waiting period.

The waiver goes into effect on February 1, 2010, and is effective for one year; unless, of course, HUD changes its mind.

Sales must be “arms-length”, with no shared interest between the buyer and seller or anyone else participating in the sale. When the resale price of the duplex is more than 20 percent above what it cost the seller to acquire it, certain conditions have to be met for the waiver to apply.

This should help keep the market supplied with affordable first time home buyer properties in good condition.