FHA Property Flip Rules 2015

Florida Mortgage Experts

As of January 1, 2015, the exception to selling homes with FHA financing within 90 days of seller acquisition has expired. HUD defines a flip as the “purchase and subsequent resale of a property in a short period of time.”

The clock for a “flip” starts when the seller acquires legal ownership of the property. The resale date is defined as the date of execution by all parties intending to finance the property with an FHA-insured mortgage.

Homes being sold using FHA financing that are “flipped” between 91 and 180 days of original acquisition date (as defined by FHA) are eligible for FHA financing – provided:

  • The re-sale price to FHA mortgagors is less than 100% greater than previous sale
  • If re-sale price is 100% or greater than the previous sale, a second appraisal is required and must support the value. (The buyer cannot pay for the second appraisal.)
  • If the second appraisal indicates a value …

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