There is a 90-day flip rule for properties being sold to an FHA buyer. That means. 2019 Understanding the current fha flipping rules – FHA.co – The 180-Day FHA Flipping Rules Even though you make it past the 90-day rule, there are still restrictions on homes that the seller owned for less than 180 days.
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The answer can be found in the fha single family loan rules in HUD 4000.1. According to page 146, "A property that is being resold 90 days or fewer following the sellers date of acquisition is not eligible for an FHA-insured mortgage."
The most restrictive rule is the 90 day FHA flipping rule. FHA will not allow a buyer to purchase a home owned by the seller for less than 90 days. Therefore the purchase contract date must be 91 days after the recorded deed date. Otherwise if less than 90 days, FHA will not insure the loan.
The 90 day flip rule applies to FHA mortgages and some conventional mortgages as well. It basically states that a property cannot be sold within 90 days of it being bought when the end buyer is using FHA financing.
The rules are as follows: There must be more than 90 days (91 days is acceptable) between the date the seller acquired the property and the date you execute your sales contract. This basically means the time between the seller’s original closing date and the date you agree to a sales price and sign the contract must be greater than 90 days.
· FHA 90-Day Rule – 1-2-3 Flip – FHA 90-Day Rule. Before February 1, 2010, FHA had a very clear and very strict rule that basically said, "If you buy a property, you can’t resell it to an FHA buyer for at least 90 days after you purchase it." Chenoa sued HUD, which in turn delayed possible implementation of the new rules for 90 days until July.
FHA closings are typically going to take 45 days to close anyway so that brings you to the middle of May anyway which appears to exceed the 90 days and make the rule moot. I would talk to each lender personally as I have seen 2 interpretations of the rule. One is the property cannot close before 90 days.