Property Flipping rules and FHA

On December 31,2011 FHA’s Temporary Flipping Waiver expires. For over a year, FHA had waived their requirement for 90 day ownership prior to purchasing a property using FHA insured financing. But that waiver expires December 31, 2011. If FHA does not renew it this means we go back to the regular policy.

FHA flipping policy:

FHA requires a property to be owned by the seller for 90 days before re-sale (this means the contract date cannot be prior to the 91^st day of the seller’s ownership). No work can be done by lender on the property prior to the 91^st day- this includes ordering an  appraisal or ordering a case number from FHA on the borrower). So if you have an investor property under a listing agreement, then you need to prepare your seller for this. The 91 days is calculated from the date title transferred to seller (not necessarily the same as the purchase date) to the date of a new sales contract.

-- This information was originally shared with us by our friend Diane Rifai, Residential Mortgage Loan Originator.  Visit her on the web at: http://www.DianeRifai.com