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90 Day FHA flip rule temporarily over

Investors!
 
The 90 Day FHA flip rule is temporarily over. That means that you don’t have to hold the property for 90 days before receiving an offer from an FHA buyer.
 
The waiver will take effect on February 1, 2010 and is effective for one year. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

— All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

— In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions. This shouldn’t be a problem for legitimate fix-and-flippers because the updates should support the increase in value.

Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD’s website.